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. 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.
Correct Answer:
Verified
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