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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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