A monopolist sells in two states and practices price discrimination by charging different prices in each state. The monopolist produces at a constant marginal cost, where MC=10. Demand in Market 1 isQ₁=50-P₁and demand inMarket 2 is Q₂=90-1.5P₂

A. What price will be charged in each market?

B. Suppose a third party enters the market, not as a producer but as a reseller, capable of reselling by transporting the goods from market to market at a cost of $4 per unit. Are these transaction costs high enough to prevent resale from happening? Explain why or why not.