It follows the general rule for profit maximization, MR = MC.
No profit if ATC above demand curve and with profit if will make a profit only if ATC curve lies below demand curve.
As the monopolist does not know exactly how much consumers are willing to buy at particular prices, it must "search" for the optimum price.
Profit per unit = (Price from demand curve - Price from ATC curve) at the level of output whereby MR = MC.
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