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QUESTION 8 Physicians Systems Consultants, Inc., is a company that provides clinical and business software and support services for medical offices. PSC's Limited Support Plan

QUESTION 8

Physicians Systems Consultants, Inc., is a company that provides clinical and business software and support services for medical offices. PSC's "Limited Support Plan" offers software support consultation services by phone under the following terms:

  • $50 per month; plus
  • $1 per minute of phone consultation service with a minimum charge of 40 minutes per month (i.e., minimum charge of $40 per month)

Given this price schedule, what is the incremental/marginal cost to a PSC customer of using the30thminute of support services in a given month under this plan?

A) $1.00

B) Zero

C) $2.66

D)$1.66

E) Can't say without knowing the customer's demand for support services.

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