use the table to answer the follwoing question :
-Because both cities are located quite far from each other,a company can charge different prices in each without fear of reselling.How much more would it 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

Question

use the table to answer the follwoing question : 
-Because both cities are located quite far from each other,a company can charge different prices in each without fear of reselling.How much more would it 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

Quizplus · Accepted Answer

If the company charges everyone one price, they will earn a profit of $10-$6 = $4 per unit in both cities. However, if they charge different prices in each city, they can earn a profit of $11-$6 = $5 per unit in City A and a profit of $9-$6 = $3 per unit in City B. The difference in profits between charging one price and charging different prices is $5 + $3 - $4 = $4. Therefore, by charging different prices, the company can earn an extra profit of $4 per unit. Dividing this by 2 (since the company is charging different prices to two cities), the extra profit per unit is $2. So, the correct answer is B) $3, as it is the closest option to $2.

Use the Table to Answer the Follwoing Question