If your cell phone bill is $40 when you use up to 300 minutes per month or $80 when you use between 300 and 400 minutes per month, the marginal cost of the 301st minute is:
A) $0.13.
B) $0.27.
C) $40.
D) $80.

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred when one more unit is consumed. In this case, using the 301st minute increases the bill from $40 to $80, resulting in an additional cost of $40.

If Your Cell Phone Bill Is $40 When You Use