Final answer:
A monopoly seeks to maximize profit by producing up to the point where marginal revenue is equal to marginal cost. However, a monopoly's MR is generally not equal to its MC at full capacity.
Step-by-step explanation:
A monopoly seeks to maximize its profit by producing up to the point where marginal revenue (MR) is equal to marginal cost (MC). This is because in order to maximize profit, a monopoly should increase output as long as MR exceeds MC, and decrease output if MC exceeds MR. The intersection of the MR and MC curves on a graph identifies the profit-maximizing quantity of output.
However, it's important to note that a monopoly's MR is generally not equal to its MC at full capacity. It is possible for MR to equal MC at a certain level of output, but not at maximum capacity.