Refer to the Following Table to Answer the Following Questions

question 69

Multiple Choice

Refer to the following table to answer the following questions:

-Kaleb is the only provider of bottled water for three cities.Because he has access to a natural spring,the marginal cost to produce an additional bottle is $0.Imagine he could price discriminate perfectly in this market.How much more profit would his firm earn if he practiced perfect price discrimination instead of practicing imperfect price discrimination (charging different prices in each city) ?

• A) $55
• B) $30
• C) $25
• D) $20
• E) $10

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Definitions:

Telepathy

The claimed conveyance of data between two individuals without the employment of recognized human sensory pathways or tangible contact.

Clairvoyance

The purported psychic ability to gain information about an object, person, location, or physical event through extrasensory perception.

Precognition

The psychic ability to know or predict events before they actually happen.

Environmental Context

The physical, social, and cultural settings that surround and influence an individual or event, affecting how they are perceived or behave.