Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees and maintenance expenses. These fixed costs total...

Gouge-em Cable Company is the only cable

television service company licensed to operate in

Backwater County. Most of its costs are access

fees and maintenance expenses. These fixed costs

total $640,000 monthly. The marginal cost of

adding another subscriber to its system is constant

at $2 per month. Gouge-em’s demand curve can

be determined from the data in the accompanying

table.