Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet in Brooklyn, New York. Brooklyn faces the following segmented demand and marginal revenue curves for its residential service:
Over the range of 0 to 50(000) customers per month:

When output exceeds 50(000) customers per month:

The company's total and marginal cost functions are as follows:

where P is price (in dollars), Q is output (in thousands), and TC is total cost (in thousands of dollars).

Question

Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet in Brooklyn, New York. Brooklyn faces the following segmented demand and marginal revenue curves for its residential service:
Over the range of 0 to 50(000) customers per month:
 
When output exceeds 50(000) customers per month:
 
The company's total and marginal cost functions are as follows:
 
where P is price (in dollars), Q is output (in thousands), and TC is total cost (in thousands of dollars).

Quizplus · Accepted Answer

The Answer of Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet in Brooklyn, New York. Brooklyn faces the following segmented demand and marginal revenue curves for its residential service:
Over the range of 0 to 50(000) customers per month:
 
When output exceeds 50(000) customers per month:
 
The company's total and marginal cost functions are as follows:
 
where P is price (in dollars), Q is output (in thousands), and TC is total cost (in thousands of dollars).