Which of the following statements accurately describe profit maximization in a monopoly? Select all that apply.

Profit maximization in a monopoly occurs when the monopolist sets the price and output level where their marginal cost equals their marginal revenue. This means the company looks at the cost of producing one more unit of their product and compares it to the revenue gained from selling that unit. For example, if a monopolist sells a toy for $10 and it costs them $6 to make, they will keep producing until the cost of making an additional toy equals the price they can sell it for. Monopolies have the power to set prices higher than in competitive markets because they are the only seller, leading to higher profits. Therefore, the key idea is that a monopoly maximizes profit by carefully balancing costs and revenues to find the most profitable level of production.