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The demand for internet services in the town of Knoxville is given by Q = 10000 50P, where Q is the number of households serviced

The demand for internet services in the town of Knoxville is given by Q = 10000 50P, where Q is the number of households serviced and P is the price of the service per month. The marginal cost of providing internet services per household is $10.

a. If Verizon is the only provider of internet services in the town, what price can it set and how many households would be served?

b. Now suppose a new firm INSAT enters the market. What happens to the price and output? How is the profit of verizon affected?

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