Phone Data Plans Often Charge a High Price for the First

question 142

Multiple Choice

Phone data plans often charge a high price for the first 10 megabytes, a lower price for the next 100 megabytes, and a very low price for the next 1,000 megabytes. An economist would say this is because

• A) not many people have cell phones these days.
• B) marginal benefits decrease as you use more megabytes.
• C) marginal benefits always decrease as circumstances change.
• D) 1,000 megabytes can be transmitted more cheaply than 100 megabytes.
• E) total benefits decrease as you use more megabytes.

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Definitions:

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.

Forced Labor

Work that is performed involuntarily and under the menace of any penalty.

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Financial gains derived from the act of buying and selling goods, services, or assets between different parties, domestically or internationally.