What are the profit-maximizing level of output and profit-maximizing price for a monopoly? Explain in terms of demand, marginal revenue, average total cost, and marginal costs

A pure monopoly is a market structure in which there is only one seller. The seller is a price maker that has very strong market power. The seller can restrict output and raise prices. The demand of a monopoly is relatively inelastic. That is to say, the quantity demanded will not significantly change with an increase in price. In a monopoly, the profit maximization is achieved when the firm produces its output in which marginal revenue equals marginal cost. Generally, at this point, the intersection between marginal cost and marginal revenue is below the industry demand curve. Additionally, the industry demand curve is still above the average cost which allows monopolists to obtain excess profits (at this point the market price will be above the average cost).