A salesperson introduces a mobile-data plan to Michael, which allows him to pay HK$200 per month and enjoy 20G of data usage. Michael said he is happy with the plan and is willing to subscribe to it. Note that Michael will use more than 20G of data when it is free-of-charge. Explain the above Michael's decision by using a graph/graphs based on the concept of marginal utility/happiness, consumer surplus and marginal cost.
A salesperson introduces a mobile-data plan to Michael, which allows him to pay HK$200 per month and enjoy 20G of data usage. Michael said he is happy with the plan and is willing to subscribe to it. Note that Michael will use more than 20G of data when it is free-of-charge. Explain the above Michael's decision by using a graph/graphs based on the concept of marginal utility/happiness, consumer surplus and marginal cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A salesperson introduces a mobile-data plan to Michael, which allows him to pay HK$200 per month and enjoy 20G of data usage. Michael said he is happy with the plan and is willing to subscribe to it. Note that Michael will use more than 20G of data when it is free-of-charge.
Explain the above Michael's decision by using a graph/graphs based on the concept of
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