Provide internet and cable television service

Reference no: EM13850042

In order to provide internet and cable television service to the Eugene-Spring?eldarea, Comcast has to bear a large ?xed cost of building a cable network.This involvesjackhammering streets, digging trenches to put cables underneath, and then paving overthe streets afterward.Suppose establishing this cable network will cost Comcast $10million.Once the cable network is laid out it will only cost Comcast an additional $5 toprovide television and internet to any additional person.The population of Eugene-Spring?eld area is approximately 200,000 people.The pricehas been set and the sales department have only sold service to 125,000 people.

1. What is Comcast's Marginal Cost (MC) of providing internet and television to onemore person?

2.What is Comcast's Average Fixed Cost (AFC) of providing the service to 125,000people?

3.What is Comcast's Average Total Cost (ATC) of providing the service to 125,000people?

Reference no: EM13850042

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