The profit maximizing output level for a monopolist is where the MARGINAL REVENUE EQUALS THE MARGINAL COST.
In order for a monopolist to determine the profit maximizing level of output, he has to gather information about market demand, product price and cost of production for different level of output. The data gathered can then be used to determine the various types of cost that are expended by the company and this can be represented on a graph. The point at which the marginal revenue equals the marginal cost is the point of profit maximum level of output for the company.
