Monopoly Diagram Maker
The monopoly diagram is one of the hardest in the IB course to draw correctly: marginal revenue must sit below the demand (AR) curve with twice the slope, output is read at MC = MR, but price is read up on the demand curve. Getting these relationships wrong costs marks instantly.
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IB EconGraph AI knows those rules. Ask for "monopoly with abnormal profit and deadweight loss" and it plots D, MR, MC and ATC with mathematically consistent intersections, or build it yourself from the monopoly template.
What the monopoly diagram shows
The profit-maximising monopolist diagram contains:
- Demand / AR curve: downward-sloping, the monopolist is a price maker facing the whole market demand.
- Marginal revenue (MR): below AR, falling twice as steeply; drawn dashed in most textbooks.
- Profit maximisation: output Qₘ where MC = MR; price Pₘ read vertically up to the demand curve.
- Abnormal profit: the rectangle between Pₘ and ATC at Qₘ, shade it when the question asks about profits.
- Deadweight loss: the welfare triangle between the demand curve, MC, and Qₘ, showing allocative inefficiency (P > MC).
How to draw it in IB EconGraph AI
- Start from the "Monopoly" template in the Component Library (D, MR and MC pre-arranged), or prompt the AI with the exact scenario you need.
- Find MC = MR and drop an annotated point; project the dotted line down for Qₘ and up to the demand curve for Pₘ.
- Add the ATC curve if your answer discusses abnormal profit, and shade the profit rectangle with the fill tool.
- For welfare analysis, shade the DWL triangle between Qₘ and the allocatively efficient output where P = MC.
- Label everything, Pₘ, Qₘ, and the competitive comparison point if you're contrasting with perfect competition.
IA & exam tips
- Paper 1 part (b) questions on monopoly almost always need the DWL triangle, practice shading it cleanly.
- When comparing with perfect competition, add P꜀ and Q꜀ on the same diagram rather than drawing two separate ones.
- Natural monopoly questions need a continuously falling ATC, use the bezier curve tool to get the shape right.
Frequently asked questions
Does the AI get MR below AR right?
Yes, the generator is instructed to keep MR below the demand curve with the correct slope relationship, and you can drag any curve to fine-tune it.
Can I shade abnormal profit and DWL on the same diagram?
Yes. The fill tool lets you shade any polygon; use different colours (e.g. green for profit, red for DWL) from the colour palette.
Is the export watermarked?
No. Full-quality SVG, PNG, and JPEG exports are free with no watermark, that is part of the free-forever guarantee.
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