Assume a firm with market power can segment its market in such a way that third-degree price discrimination is possible. Specifically, assume it can segment its customers into the markets shown below. Assuming it can only set a single price in each market, what prices should it set?
a. Market 1: $7.40; Market 2: $3.60
b. Market 1: $11.20; Market 2: $4.80
c. Market 1: $13.10; Market 2: $6.20
d. Market 1: $18.00; Market 2: $7.00