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Solaris, a Wisconsin-based telecommunications company, offers several residential phone service plans. Under their Volume Discount Plan, residential customers pay $.20 per minute for long distance
Solaris, a Wisconsin-based telecommunications company, offers several residential phone service plans. Under their Volume Discount Plan, residential customers pay $.20 per minute for long distance calls and receive a 25% discount on their total long distance charges if the customer's monthly long distance charges meet or exceed $10.
Under this plan, the incremental cost of the 50th minute of phone service would be
A. $.20.
B. $.15.
C. -$2.50.
D. -$2.30.
E. Additional information is needed about the consumer's demand.
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