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Refer to the Accompanying Table to Answer the Questions  Willingness to Pay for Bottled Water \text { Willingness to Pay for Bottled Water }

Question 65

Multiple Choice

Refer to the accompanying table to answer the questions.  Willingness to Pay for Bottled Water \text { Willingness to Pay for Bottled Water }
 Quantity  City A  City B  City C 1$20$15$142$17$13$133$14$11$124$11$9$115$8$7$10\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}
 Marginal Cost =$0\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. Imagine you could price-discriminate perfectly in this market and that you are a profit-maximizing firm. Calculate how much more profit your firm would earn if you practiced perfect price discrimination instead of practicing imperfect price discrimination (charging different prices in each city) ?


A) $55
B) $30
C) $25
D) $20
E) $10.

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