In a monopoly, which pricing strategy is most commonly employed to maximize profits while considering the market power held by the monopolist?

In a monopoly, the most common pricing strategy used to maximize profits is called price discrimination. This means the monopolist charges different prices to different customers based on their willingness to pay. For example, a movie theater might charge higher prices for evening shows when more people are likely to go, while offering discounts for matinee showings to attract more customers. By doing this, the monopolist can capture more consumer surplus and increase overall profits. This strategy works well because the monopolist has the power to set prices without competition, allowing them to tailor pricing to different segments of the market.