a) There were really two chips done, the 6501 and 6502. The difference was in a few pins, the 6501 was fully pin-compatible with the 6800, the 6502 was easier to use in a system design since it did not require a two-phase non-overlapping 5V rail-to-rail clock.
b) The 6501 cost $20, the 6502 cost $25. Quantity 1. They ran at 1 MHz. You could send a letter to the company in Pennsylvania, with a check enclosed, and buy 1 chip for that price. Try buying one CPU chip from Intel nowadays. :)
c) The lawsuit by Motorola that he mentions resulted in MOS agreeing to discontinue the 6501. But that didn't matter much for 99% of their potential customers. First, the pin differences were very minor. Second, the TTL-level clock input in the 6502 meant that an external clock driver chip wasn't needed.
[1] http://en.wikipedia.org/wiki/MOS_Technology_6502 [2] http://en.wikipedia.org/wiki/Motorola_6800