Refer to the Following Table to Answer the Following Questions

question 110

Multiple Choice

Refer to the following table to answer the following questions:

-Isabelle is the only provider of bottled water for three cities.Because she has access to a natural spring,the marginal cost to produce an additional bottle is $0.As she knows,firms discriminate to improve profits.How much would her firm earn in additional profit if she practiced 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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