What is price discrimination in the context of natural monopolies?

Price discrimination in the context of natural monopolies refers to the practice of charging different prices to different customers for the same product or service. This is often done to maximize profits while still serving a wide range of consumers. For example, a natural monopoly, like a water company, might charge lower rates for families with low incomes while charging higher rates for businesses that can afford to pay more. This allows the company to cover its costs and maintain service while making sure that everyone has access to essential services. By using price discrimination, the monopoly can balance its financial needs with the public's need for fair access to important resources.