The operator estimates a marginal cost of $20 per month per household. -180 =A cable company is considering a new suburban market. 2p, where q is expressed in thousands of households and p is the price (or charge) per month. The expected average fixed cost per home is $700. The monthly demand for residential cable in the city has been estimated to be given by q(p)
a. Determine the quantity of households that would subscribe at a price of $0?
b. What price would this cable company charge per month without competition in the market?
c. Determine the price elasticity of demand at this price?
d. Discuss how long would the cable company need to wait to cover fixed cost?