Jerho J.

Abao
BSMA-2

Monopoly

As you can see from my graph above, a monopoly firm makes the maximum profit when the quantity is
less than the price. But first, in order to determine the maximum price of a monopoly, we must use the
MR=MC rule, which indicates that we must first determine where the MC meets the MR, then draw a
vertical line across the demand curve, and that's how the monopoly gets its maximum profit.