Suppose you own two nail salons, one in Pittsburgh, PA, with lots of competition, and one in Lisbon, OH, with little competition. The price elasticity of demand in Pittsburgh is -2, while in Lisbon, it is -1.5. Assume the marginal cost for each nail application is $10 in both locations. What are the optimal prices in each location?

A.

Price in Pittsburgh = $60; Price in Lisbon = $20.

B.

Price in Pittsburgh = $30; Price in Lisbon = $60.

C.

Price in Pittsburgh = $30; Price in Lisbon = $20.

D.

Price in Pittsburgh = $20; Price in Lisbon = $30.