as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how does a monopolist maximize its profit?
user
a monopolist maximizes its profit by producing where marginal revenue equals marginal costs (mr=mc). marginal revenue is the additional revenue a monopolist earns for one more unit of output, and marginal cost is the additional cost a monopolist incurs for one more unit of output. the monopolist will set its price at a level where the quantity demanded is equal to the quantity supplied, resulting in maximum profit.
assistant