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Refer to the Following Table to Answer the Following Questions

Question 67

Multiple Choice

Refer to the following table to answer the following questions:
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
-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

Correct Answer:

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