For a monopolist at maximum-profit equilibrium with a demand curve of finite elasticity, price is always above marginal cost.

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A monopolist at maximum-profit equilibrium will produce where marginal revenue (MR) equals marginal cost (MC). If the demand curve has finite elasticity, this means that the price that maximizes profit will be above marginal cost. This is because, for a finite elastic demand curve, a decrease in price will lead to an increase in quantity demanded that is proportionally larger than the percentage decrease in price, thereby increasing total revenue. As such, in order to maximize profit, the monopolist will continue to raise price until marginal revenue equals marginal cost at a price above marginal cost.

For a Monopolist at Maximum-Profit Equilibrium with a Demand Curve