Monopoly price formula p = mc

Aspect of monopolistic markets

In microeconomics, a monopoly price is set by a monopoly.^[1][2] A monopoly occurs when a firm lacks any viable competition and is the sole producer of the industry's product.^[1][2] Because a monopoly faces no competition, it has absolute market power and can set a price above the firm's marginal cost.^[1][2]

The monopoly ensures a monopoly price exists when it establishes the quantity of the product.^[1] As the sole supplier of the product within the market, its sales establish the entire industry's supply within the market, and the monopoly's production and sales decisions can establish a single price for the industry without any influence from competing firms.^[1][2][3] The monopoly always considers the demand for its product as it considers what price is appropriate, such that it chooses a production supply and price combination that ensures a maximum economic profit,^[1][2] which is determined by ensuring that

how price and output is determined under monopoly

how price and output is determined under monopolistic competition