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.

E-SEARCHER MARKETS WITH HIGH ENTRY BARRIERS 505 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. NUMBER OF SUBSCRIBERS SUBSCRIPTION PRICE (PER MONTH) $25 20,000 20 40,000 15 60,000 10 80,000 5 100,000 150,000 What price will Gouge-em charge for its cable servic What are its profits at this price? Now suppose the Backwater County Public Uti Commission has the data and believes that c