Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 exam•Written by the Fiveable Content Team • Last updated August 2025
Definition
A pricing strategy in which a monopolist charges each consumer the maximum price they are willing to pay, producing the quantity where price equals marginal cost, extracting all economic surplus, and eliminating deadweight loss.