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Refer to the Accompanying Table  Maximum Willingress to Pay (NWP) for Ice Cream \text { Maximum Willingress to Pay (NWP) for Ice Cream }

Question 84

Multiple Choice

Refer to the accompanying table. Imagine there are two cities (City A and City R) and you are the only provider of ice cream sandwiches for both. Use this information to answer the questions.  Maximum Willingress to Pay (NWP)  for Ice Cream \text { Maximum Willingress to Pay (NWP) for Ice Cream }
 Sandwiches \text { Sandwiches }
 City A  MWP  City R  MWP  Aladdin $16 Richard $15 Alan $12 Ramon $14 Alvin $10 Robert $13 Albert $8 Roger $11 Albus $6 Reginald $4\begin{array}{llll}\text { City A } & \text { MWP } & \text { City R } & \text { MWP } \\\text { Aladdin } & \$ 16 & \text { Richard } & \$ 15 \\\text { Alan } & \$ 12 & \text { Ramon } & \$ 14 \\\text { Alvin } & \$ 10 & \text { Robert } & \$ 13 \\\text { Albert } & \$ 8 & \text { Roger } & \$ 11 \\\text { Albus } & \$ 6 & \text { Reginald } & \$ 4\end{array}
 Unit cost is $7 for each ice cream sandwich \text { Unit cost is } \$ 7 \text { for each ice cream sandwich }
-Because both cities are located quite far from each other, you can charge different prices in each, without fear of reselling. How much more would you earn in profit by charging two different prices compared to charging everyone only one price?


A) $4
B) $3
C) $2
D) $1
E) $0

Correct Answer:

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