Refer to the Accompanying Table to Answer the Questions $\text { Willingness to Pay for Bottled Water }$

question 72

Multiple Choice

Refer to the accompanying table to answer the questions. $\text { Willingness to Pay for Bottled Water }$
$\begin{array}{lccc}\text { Quantity } & \text { City A } & \text { City B } & \text { City C } \\1 & \$ 20 & \$ 15 & \$ 14 \\2 & \$ 17 & \$ 13 & \$ 13 \\3 & \$ 14 & \$ 11 & \$ 12 \\4 & \$ 11 & \$ 9 & \$ 11 \\5 & \$ 8 & \$ 7 & \$ 10\end{array}$
$\text { Marginal Cost }=\$ 0$
-You are the only provider of bottled water for three cities. Because you have access to a natural spring, the marginal cost to produce an additional bottle is $0. As you know, firms discriminate to improve profits. How much would your firm earn in additional profit if you practice price discrimination across cities, charging a different price in each city, versus charging everyone a single price?

• A) $9
• B) $10
• C) $20
• D) $30
• E) $5

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