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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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