Continental Mobile offers an optional call package whereby each month the subscriber gets the first 50 minutes free, the next 100 minutes at $0.25/min, and any additional time at the normal rate of $0.50/min. What is the opportunity cost of making an additional 20 minutes of calls for a subscriber who currently makes A) 40 minutes each month? B) 140 minutes each month?

Continental Mobile offers an optional call package whereby each month the subscriber gets the first 50 minutes free, the next 100 minutes at $0.25/min, and any additional time at the normal rate of $0.50/min. What is the opportunity cost of making an additional 20 minutes of calls for a subscriber who currently makes A) 40 minutes each month? B) 140 minutes each month?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 2E

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