Economics
Monopoly Pricing and Deadweight Loss
Quick fact
A monopolist's profit-maximizing price is always above marginal cost, but it is not the maximum price consumers would pay; it's the price that balances losing customers with earning more per sale.
Why this is interesting
You might think a monopoly charges the highest possible price—but that's not true. The actual price is lower than that, yet it still leaves society worse off. Why?