Discussion and Results Chapter: Introductory Algebra

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¶ … Algebra

Many times when purchasing a service there are choices to make. This man is totally confused and frustrated about his options.

One example is phone service:

A telephone company has a choice of two plans. Plan A - $30 per month and $.05 per phone call and Plan B - $20 per month and $.10 per phone call. Which is the best plan for you?

By the end of this discussion, you will have demonstrated your ability to:

Explain two possible plans that provide the same service

The first plan is saying that there is a fixed cost at $30 per month and then there is a variable cost associated with it which is $0.05 cents per phone call- this is a variable cost because it is dependent on how many phone calls are actually made. The second plan is saying there is a fixed cost of $20 per month and then the variable cost associated with this is $0.10 per call- this is a variable cost and is directly dependent on how many calls are actually made by the user.

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