How many types of price discrimination under monopoly?

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2026-08-09 17:30

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There are three main types of price discrimination under monopoly: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each consumer their maximum willingness to pay. Second-degree price discrimination offers different prices based on the quantity consumed or product version, such as bulk discounts. Third-degree price discrimination segments consumers into different groups based on observable characteristics, charging each group a different price.

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