In order to maximize profit, a monopolist sets while a firm in a perfectly competitive market sets This is because for a monopolist while for a competitive firm Marginal Revenue = Marginal Cost; Price = Minimum of Average Cost; Marginal Revenue is always equal to Price; Price is always higher than Marginal Revenue. Price = Marginal Cost; Marginal Revenue = Marginal Cost; Marginal Revenue is higher than Price; Marginal Revenue is less than Price. Marginal Revenue = Marginal Cost; Price = Marginal Cost; Marginal Revenue is less than Price (except at the vertical intercept); Price is always equal to Marginal Revenue. Price = Marginal Revenue; Marginal Revenue = Marginal Cost; Price is always equal to Marginal Revenue; Marginal Revenue is less than Price (except at the vertical intercept).