A rain coat manufacturer sells raincoats in Arizona and Oregon. Due...

A rain coat manufacturer sells raincoats in Arizona and Oregon. Due to different climates, each state has different demands for raincoats. The marginal cost of production is the same in each state and is a constant $30. The demand curve for raincoats in each state is: Q_Oregon = 130 - 2P (or P = 65 - 0.5Q_Oregon) Q_Arizona = 80 - P (or P = 80 - Q_Arizona)

The raincoat manufacturer wants to practice third-degree price discrimination. How much should it charge in each state? (Assume that resale between the states is not possible.)

A: P = $30 in both states.

B: P = $65 in Oregon and P = $40 in Arizona.

C: P = $80 in Orgon and P = $55 in Arizona.

D: P = $47.50 in Oregon and P = $55 in Arizona.

E: P = $47.50 in both states.