1.Rogers, the phone company, offers an optional package for calls whereby each month the subscriber gets the first 50 minutes of calls free, the next 100 minutes at $0.05 per minute, and any additional time at the normal rate of $0.10 per minute.

(a)Draw the budget constraint for cell phone calls and the composite good for a subscriber with an income of $80 per month.

(b)What is the opportunity cost of making an additional 20 minutes of calls if a subscriber currently makes 40 minutes of calls each month?

(c)What is the opportunity cost of making an additional 20 minutes of calls if a subscriber currently makes 140 minutes of calls each month?