A Price Control on a Monopoly Can Increase Output Without regulation, the monopoly maximizes profit by choosing P_m, Q_m. If the government imposes a price control at P_R, the monopolist chooses Q_R, a larger quantity. The optimal price is at P = MC, but at this price the monopolist is making a loss and will exit the industry. The lowest price that will keep the monopolist in the industry is P = AC at point a.