The profit maximizing monopolist produces where MR = MC Since it is a monopolist can't it charge any price it wishes? The answer is NO, not if it wishes to maximize profits.

    The firm can only sell Q* units if it charges price P*. Any higher price and it would sell less , any lower price and it would sell more, and we know that any output other than Q* isn't profit maximizing. It turns out that consumer demand is the final constraint on the behavior of a monopolist. It can't force consumers off of their demand curve.

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