Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County

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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.

Complete the following table by computing the total revenue, total cost, and profit at each of the various subscription prices.

Subscription Price	Number of Subscribers	Total Revenue	Total Cost	Profit
	(Per Month)
$25	20,000
20	40,000
15	60,000
10	80,000
5	100,000
1	150,000

Gouge-em will charge   for its cable services, earning them a profit of.

Now suppose the Backwater County Public Utility Commission has the data and believes that cable subscription rates in the county are too expensive and that Gouge-em's profits are unfairly high.

What regulated price will it set so that Gouge-em makes only a normal rate of return on its investment?

1. $5

2. $10

3. $15

4. $20