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Suppose that demand for local cable TV service is given by p = 80 - 0.4x where p is the monthly price in dollars and x is the number of subscribers (in hundreds).
(a) Find the total revenue as a function of the number of subscribers.
(b) Find the number of subscribers when the company charges $50 per month for cable service. Then find the total revenue for p = $50.
(c) How could the company attract more subscribers?
(d) Find and interpret the marginal revenue when the price is $50 per month. What does this suggest about the monthly charge to subscribers?
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