A monopolist is a firm which has (in pure theoreticalterms) 100% market share.
It faces a downward sloping Demand (AR) curve andcan choose to provide at any point along that curve.
The monopolists· profit maximisation problem ismuch like the one facing the producer in a perfectlycompetitive market
MR = MC for profit max, as before
The big difference is that
prices are NOT FIXED
e can describe the price as a function of output.
= P(Q).Q ² TC (Q, r, w)
Differentiate wrt Output and set to 0