Maximum-profit equilibrium: monopoly

Figure 1 is too small to indicate quickly the precise Maximum-profit position.So the Maximum-profit position would fall very close to 67 units produced and sold per period.Monopoly is a kind of extreme instance of competitive imperfection.Maximizing profit means making as much money as supply conditions will permit.To maximize profit, there must be something the firm can do that will influence its profit.There must be some variable which changes profit, and which the firm can control.We treat the first two columns of Table 1 as representing a monopoly firm's demand schedule.It is now possible to see at once why the profit-maximizing process outlined here is a simple one.To review the basic ideas of profit maximization.Very few real-life firms find themselves in this position.