Table 17-36

The information in the table shows the total demand for water service in Takoma. Assume that there are two companies operating in Takoma.Each company that provides these services incurs an annual fixed cost of $400 and that the marginal cost of providing the service to each customer is exactly $2.00. Figures listed are for an annual service contract.

Quantity Price C 60 100 55 200 50 300 45 400 40 500 35 600 30 700 25 800 20 900 15 1000 10 1100 5 O 1200