A monopolist who is able to practice third-degree price discrimination will make greater profits than a monopolist who is able to practice first-degree price discrimination.

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First-degree price discrimination allows a monopolist to capture the entire consumer surplus by charging each consumer their maximum willingness to pay, leading to the highest possible profits. Third-degree price discrimination, on the other hand, involves charging different prices to different groups based on their elasticity of demand, which typically results in lower profits compared to first-degree discrimination.

A Monopolist Who Is Able to Practice Third-Degree Price Discrimination