Can monopoly set both the price and quantity?

Yes, a monopoly can set both the price and quantity of its product. Unlike firms in competitive markets, a monopolist faces a downward-sloping demand curve, allowing it to choose the price by adjusting the quantity produced. By selecting a quantity that maximizes its profits, the monopolist can then set the corresponding price based on the demand for that quantity. This ability to influence both price and quantity is a defining characteristic of monopoly power.