How monopolies make production and pricing decisions?

Monopolies exist because there is one producer of a product or a service and many consumers. The main characteristic of a monopolized market is the lack of competition in a given space and, therefore, the lack of substitute products. This characteristic makes the producer (the monopoly) the price maker of goods or services.

Monopolies tend to produce quantities such that the marginal cost of production equals the margin revenue. It is, however, important to note that since they have control over the number of goods in the market, they can also determine the prices of the goods. Therefore, monopolies charge more per product but produce fewer products, unlike companies in a competitive market.