1. Consider the pricing plans offered by the electricity provider TXU to an apartment dweller in 76712 below. Describe how the plans differ in terms of pricing and other characteristics?

Texas Choice 12 plan:

Rate 14.6 per Kwh. || Term 12 month

$50 prepaid mastercard bonus

25% renewable

Lock-in rate that wont fluctuate

Prepaid mastercard in February every year with 3% cash back

Value Edge 12 plan:

Rate 9.9 per Kwh || Term 12 month

$25 prepaid mastercard bonus

12 month fix rate

$30 bill credit each month when usage in a billing cycle hits 800 Kwh or more

2. Explain why the marginal cost of these two plans are likely the same or very close?