What does a single-price monopolist do?

A single-price monopolist is a market structure where a single firm is the sole provider of a good or service, and it charges the same price to all consumers for its product. This approach maximizes profit by finding the price at which the quantity of the good demanded equals the quantity supplied. Since it is the only seller in the market, the monopolist faces a downward-sloping demand curve, meaning it can set prices for different quantities sold. However, under the single-price monopolist model, it does not discriminate among consumers; all pay the same price regardless of their willingness to pay. This contrasts with strategies that involve charging different prices to different consumer segments or varying prices based on demand, which are common in price discrimination scenarios.

Monopolists also do not set prices based on competition, as they operate without direct competition in their market; they are price setters rather than price takers. Therefore, the key characteristic of a single-price monopolist is its strategy to charge one uniform price for its product across all consumers.