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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Definitions:

Economic Force

External factors in the economic environment that can affect an organization's ability to operate and compete, such as inflation, unemployment rates, and market demand.

Global Trade

The exchange of capital, goods, and services across international borders or territories, influencing the economy of a global scale.

Staff Authority

A type of authority that allows individuals or departments to advise others within the organization but does not grant them the power to make final decisions.

Staffing Issues

Challenges related to the recruitment, retention, management, and scheduling of employees in an organization.