Short Answer 
A monopoly consists of many buyers and one seller, allowing the seller to control supply and set higher prices due to a lack of competition. To maximize profits, a monopoly identifies its optimal output level where marginal cost equals marginal revenue and establishes an equilibrium price to maintain profitability in the market.
Step 1: Understand Monopoly Structure
A monopoly is characterized by a market with many buyers and only one seller. This unique structure allows the seller to control the supply of goods, leading to the ability to set higher prices. The single seller benefits significantly from having no direct competition, enhancing their market power.
Step 2: Profit Maximization Strategy
The primary goal of a monopoly is to achieve profit maximization. To do this, they determine their ideal output level by finding the point where marginal cost (MC) equals marginal revenue (MR). This point helps identify the optimal quantity of goods to supply to the market, ensuring maximum profit while aligning costs and revenues.