Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of adding another subscriber to its system is constant at $2 month. Gouge-em's demand curve can be determined from the data in the accompanying table. Complete the following table by computing the total revenue, total cost, and profit at each of the various subscription prices. Total Cost Profit Number of Subscribers Subscription Price (Thousands Per Month) Total Revenue ($, Thousands) Fixed Cost ($, Thousands) ($, Thousands) ($, Thousands) 20 $ $640 $ 40 $640 $ 60 $640 $ 80 $640 $640 $640 $25 20 15 10 5 1 100 150 $ $ $ $ $ $ $ $

Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of adding another subscriber to its system is constant at $2 month. Gouge-em's demand curve can be determined from the data in the accompanying table. Complete the following table by computing the total revenue, total cost, and profit at each of the various subscription prices. Total Cost Profit Number of Subscribers Subscription Price (Thousands Per Month) Total Revenue ($, Thousands) Fixed Cost ($, Thousands) ($, Thousands) ($, Thousands) 20 $ $640 $ 40 $640 $ 60 $640 $ 80 $640 $640 $640 $25 20 15 10 5 1 100 150 $ $ $ $ $ $ $ $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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