Answer to Question #21672 in Microeconomics for Joseph

Question

the following cell-phone offer by sprint is typical of what one can get with a cellphone plan: 4,000 free minutes for $39.99 a month. The fine print says that only 350 of those minutes are anytime minutes, the remaining are restricted to weekend and evenings, you are charged 35 cents per minute for any additional minutes if you go over your allotted time.
- What is your marginal cost?
- what would your average variable cost curve for peak time usage look like?
- if you do not keep track of your usage, how would you figure your marginal cost?
- why do firms offer such confusing plans?
- were firms that charged this way in favor of or against portability of phone numbers?