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Question
Refer to the following table to answer the following questions:
| Quantity | City A | City B | City C |
| 1 | $20 | $15 | $14 |
| 2 | $17 | $13 | $13 |
| 3 | $14 | $11 | $12 |
| 4 | $11 | $9 | $11 |
| 5 | $8 | $7 | $10 |
Kaleb is the only provider of bottled water for three cities. Because he has access to a natural spring, the marginal cost to produce an additional bottle is $0. Imagine he could price discriminate perfectly in this market. How much more profit would his firm earn if he 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
Answer
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