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 $ $ $ $ $ $ $ $

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

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