Chapter 7 - Assignment 3: Online Service Cost

Compare the standard plan and the limited usage plans offered by America Online.

  1. Assuming that an individual uses more than five hours of connection time each month, under which of these plans would the marginal utility of the last minute spent online be higher? Why?
  2. Would the marginal utility of the last hour spent online be equal to zero for either of these plans? Explain your answer.

[ Chapter 7 | Feedback ]
Copyright Houghton Mifflin Company. All Rights Reserved.
Terms and Conditions of Use and Trademark Information