The following cell-phone offer by sprint is typical of what one can get on a cell phone plan: 4,000 free minutes for $39.99 a month. The fine print says that only 350 of those minutes are anytime minutes, the remaining are restricted to evening and weekend usage. If you go over your allotted time, you are charged 35 cents per minute for any additional minutes.
1. What is your marginal costs, Graph it.
2. what is your average variable cost curve for peak time usage look like?