Refer to the accompanying table to answer the questions.
-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. As you know, firms discriminate to improve profits. How much would your firm earn in additional profit if you practice 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:
Verified
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