Mary buys cell-phone services from a company that charges $40 per month. For that $40 she is allowed 700 minutes of free calls and then pays 10 cents per each additional minute. Mary has used 700 minutes this month so far. What is her marginal cost of making a 10 minute phone call

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10-06-2022
Business

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Mary buys cell-phone services from a company that charges $40 per month. For that $40 she is allowed 700 minutes of free calls and then pays 10 cents per each additional minute. Mary has used 700 minutes this month so far. What is her marginal cost of making a 10 minute phone call

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VidyaaTech2022 VidyaaTech2022 · Answer 1 · 2022-06-23T12:10:40+02:00

The marginal cost of making ten minutes phone call by Mary is equal to zero.

What is a marginal cost?

A marginal cost refers to the additional cost of manufacturing an extra unit of a product or a service.

According to the given situation, Mary is allowed to make free calls at the rate of $40 for 700 minutes and she levied with extra $0.10 per minute over those 700 minutes. She has used the calling for 700 minutes only.

Therefore, the marginal cost of making a 10-minute call is zero as it lies within the 700 minutes of calling.

Learn more about the marginal cost in the related link:

https://brainly.com/question/13492386

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