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A doctor sets up a private practice in small town where he faces no other competitors....

A doctor sets up a private practice in small town where he faces no other competitors. In spite of his monopoly position why is he not guaranteed to make a profit?

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He will only make a profit if the cost of his services are less than the total revenue that he is charging, as a monopoly he will be operating at the point where the MR=MC and at that point the price of the services will be decided as per the demand. if he charges a higher price he will not be profit maximising. at this point if the cost of operation is more than the revenue he will be making a loss.

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