Consider a cable TV company that has a fixed cost of 100

Last updated: 4/21/2023

Consider a cable TV company that has a fixed cost of 100 million and a marginal cost of 5 per subscriber The company is regulated with an average cost pricing policy The first two columns of the following table show five points on the initial demand curve For example at a price of 27 the quantity demanded is 3 million subscribers For each 1 reduction in price the number of subscribers increases by 1 million The regulated price is