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Tom [10]
3 years ago
11

Qs 14-2 fixed and variable costs lo c2 a cell phone company offers two different plans. plan a costs $80 per month for unlimited

talk and text. plan b costs $0.20 per minute plus $0.10 per text message sent. you need to purchase a plan for your 14-year-old sister. your sister currently uses 1,700 minutes and sends 1,600 texts each month. (1) what is your sisters total cost under each of the two plans
Business
1 answer:
Arlecino [84]3 years ago
3 0

Plan A: Post paid plan

Total cost A = $80 per month

 

Plan B: Pre paid plan

Total cost B = $0.20 per minute * 1,700 minutes + $0.10 per text message * 1,600 texts

Total cost B = $340 + $160

Total cost B = $500 per month

 

<span>Therefore it is better to get the post paid plan, plan A.</span>

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Question Completion:

Matrix payoff:

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b) The Nash Equilibrium concept determines the optimal solution in a non-cooperative game in which each player (e.g. Paolo and Sharon) lacks any incentive to change their initial strategies. This implies that each player can achieve their desired outcomes by not deviating from their initial strategies since each player's strategy is optimal when considering the decisions of the other player.

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