:The Law of Demand applies to every seller, including monopolies. If a monopoly increased its price to infinity, then it would have no sales. Thus a monopoly cannot increase its prices without limitation. It is still limited by the Law of Demand, and a monopoly increases its price no higher than where marginal revenue equals marginal cost. | :The Law of Demand applies to every seller, including monopolies. If a monopoly increased its price to infinity, then it would have no sales. Thus a monopoly cannot increase its prices without limitation. It is still limited by the Law of Demand, and a monopoly increases its price no higher than where marginal revenue equals marginal cost. |