Refer to the Following Table to Answer the Following Questions

question 22

Multiple Choice

Refer to the following table to answer the following questions:

-Kenneth 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.If he could price discriminate by charging a different price in each city,how many more people would have access to bottled water compared to when he charges only one price for all three cities?

• A) one more person
• B) two more people
• C) three more people
• D) four more people
• E) exactly the same number of people

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Accounts Receivable

The money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Net Credit Sales

The total value of sales made on credit during a period, minus any sales returns or allowances.