Question

The telephone company offers two billing plans for local calls. Plan 1 charges ​$32 per month for unlimited calls and Plan 2 charges ​$17 per month plus ​$0.03 per call.

Answer 1

Explanation:

Answer 2

The indifference point is 500 calls.

Explanation:

Giving the following information:

Plan 1 charges ​$32 per month for unlimited calls and Plan 2 charges ​$17 per month plus ​$0.03 per call.

I assume we have to determine the indifference point between the two plans.

First, we need to structure the cost formulas:

Plan 1= 32

Plan 2= 17 + 0.03*x

x= call

Now, we need to equal both formulas:

32 = 17 + 0.03x

15= 0.03x

500= x

The indifference point is 500 calls.

Plan 1= $32

Plan 2= 17 + 0.03*500= $32