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A hotel pays the phone company $100 per month plus $0.35 for each call made. During January 8,000 calls were made. In February 4,000 calls
A hotel pays the phone company $100 per month plus $0.35 for each call made. During January 8,000 calls were made. In February 4,000 calls were made.
a) Calculate the hotel's phone bills for: January February.
b) Calculate the cost per phone call in: January February
c) Separate the January phone bill into its fixed and variable components.
fixed component:
variable component:
total $$
d) What is the marginal cost of one additional phone call in January?
e) What was the average cost of a phone call in January?
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