To maximize profits, a monopoly should choose a price where demand would be the greatest.
To create a monopoly, a company must have a large or total control of a product. To do so, they must have most or all of the following criteria (however, not limited to these):
1) Quality: Quality of the merchandise must be exceptionally good to extremely well-made, and must either compete or exceed standards
2) Price: The Price of the product is what really controls the market. The price, regardless of how well-made the product is (of course, the product can't be poor), must be below the average pricing of competitors.
These two are the most important points in making a monopoly. Of course, other reasons may be involved, such as:
3) Governmental Rule: Some companies are allowed to become monopolies to be able to provide better services to the consumers, such as electrical companies, for example.
4) Customer Service: One of the key ingredients to drawing customers, however, it is not exactly needed. If all the above criteria's are met, customer services is a bonus that would be the last step to becoming a monopoly.
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~Rise Above the Ordinary
