Consider the Accompanying Table $\text { Willingness to Pay for Bottled Water }$

question 126

Multiple Choice

Consider the accompanying table. 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. How many bottles of water would you need to produce to maximize your profits and at what price would you sell it? $\text { Willingness to Pay for Bottled Water }$
$\begin{array}{lccc}\text { Quantity } & \text { City A } & \text { City B } & \text { City C } \\1 & \$ 20 & \$ 15 & \$ 14 \\2 & \$ 17 & \$ 13 & \$ 13 \\3 & \$ 14 & \$ 11 & \$ 12 \\4 & \$ 11 & \$ 9 & \$ 11 \\5 & \$ 8 & \$ 7 & \$ 10\end{array}$
$\text { Marginal Cost }=\$ 0$

• A) 11 bottles at $11 each
• B) 10 bottles at $10 each.
• C) 15 bottles at $7 each..
• D) 8 bottles at $12 each,
• E) 15 bottles at $7 each

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