Question: Consider North market with total demand P = 100 - QN and South market with total demand P = 100 - QS .If the marginal

Consider North market with total demandP= 100 -QNand South market with total demandP= 100-QS.If the marginal cost is 20, it can be shown the optimal single price to charge in both markets isP= 35 + 25.If= 0.45, which of the following statements is correct? (Assume no fixed costs)

Neither the North nor South market will be served.

Both North and South markets will be served.

Only the South market will be served.

Only the North market will be served.

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