Although the monopoly firm has power to influence market price, it does not necessarily mean that  the monopolist always makes profits.  In the short run the monopolist can earn abnormal  profits or make losses when average revenue is below average cost. 

Figure 2.34 Short run abnormal profit.

The monopolist is in equilibrium at point E where MC=MR. Equilibrium out put Q1 is produced and sold at equilibrium price P1 to earn abnormal profits, The shaded area CP₁, AB represents the profits earned by the monopolist since price (AR) is higher than the cost of production (AC) or simply price P1 is higher than cost C.