Simone is the only provider of pumpkins for three cities. Because she has her own large garden,
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Question:
Simone is the only provider of pumpkins for three cities. Because she has her own large garden, the marginal cost to produce an additional pumpkin is $0. As she knows, firms discriminate to improve profits. How much would she earn in additional profit if she practiced price discrimination across cities, charging a different price in each city versus charging everyone a single price?
A. $9
B. $5
C. $22
D. $15
E. $30
Willingness to Pay for Pumpkins
| 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 |
Marginal Cost = $0
Expert Answer:
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