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

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

Therefore it is better to get the post paid plan, plan A.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.