Consider the following scenario to answer the questions that follow.
The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers: college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-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? 
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
Correct Answer:
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