In the context of a monopoly, how do fixed costs influence the pricing strategy when calculating marginal costs?

In a monopoly, fixed costs are the expenses that do not change regardless of how much the company produces, like rent or salaries. When a monopolist sets prices, they focus on marginal costs, which are the costs of producing one more unit of a product. Fixed costs are important because they affect the overall cost structure, but they do not change with each additional unit produced. For example, if a monopoly has high fixed costs, it may choose to set a higher price to cover those costs while ensuring that each additional unit produced is profitable. This means that understanding both fixed costs and marginal costs helps the monopolist decide the best price to charge for their product.