II. Assume the inverse demand for gas in the north of a country is Dn(qn) = 700 ? qn while in the south the inverse demand function is Ds(qs) = 710 ? 3qS. There is only one brand of gas stations that has a constant marginal cost c = 100 and operates in both parts of the country (q is measured in gallons and p in cents). (a) If the firm charges the same uniform linear price in both parts of the country. Write the problem of the firm. What would be the equilibrium quantities qN and qS. (b) If the firm can choose different prices in the north and south, and consumer in each part of the country cannot travel to buy in the other part. Write the problem of the firm. What would be the equilibrium quantities qN and qS, and prices pN and pS? (c) If consumers can by gallons of gas in whatever part of the country and have them delivered for 6 cents per gallon. Would the firm alter the prices found on (b)? What if the shipping cost is just 4 cents per gallon?

II. Assume the inverse demand for gas in the north of a country is Dn(qn) = 700 q\" while in the south the inverse demand function is D3093) = 710 3g3. There is only one brand of gas stations that has a constant marginal cost c = 100 and operates in both parts of the country ((1 is measured in gallons and p in cents). (a) If the rm charges the same uniform linear price in both parts of the country. Write the problem ofthe rm. What would be the equilibrium quantities qN and qs. (b) If the rm can choose different prices in the north and south, and consumer in each part of the countrycannot travel to buy in the other part. Write the problem of the rm. What would be the equilibriumquantities cm and gs, and prices 3m and pg? (0) If consumers can by gallons of gas in whatever part of the country and have them delivered for 6 centsper gallon. Would the rm alter the prices found on (b)? What if the shipping cost is just 4 cents pergallon