Monopoly
The graph above shows the marginal cost, marginal revenue, average cost and average revenue curves for a typical monopolist. Since a monopoly can set its quantity at whatever it likes, since there is no market to adversely affect its decision, a monopoly will produce at a level where marginal cost equals marginal revenue. At quantities less than this, marginal cost will be lower than marginal revenue, and therefore the monopolist could increase its profits by producing one extra good; at quantities greater than this, the firm would lose money for each extra unit since cost would be greater than revenue.
Having set the quantity (the vertical dotted line), the monopolist can calculate its profit. Total revenue will be the price (measured by the upper horizontal dotted line) multiplied by the quantity. Total variable cost will be the area above the marginal cost curve. Profit will be revenue minus variable cost minus any fixed costs.
Further details on monopoly can be found here.
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economic-truth is not the truth, it's just being economical with it