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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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