Company XYZ planned to invest $20 million in a new digital camera project. After the initial 5 million dollars were invested, the company realized that cellphones with cameras have become

increasingly popular among consumers and this may significantly reduce the demand for their

new digital cameras. After collecting data and revising the demand for the new cameras, the

estimated sales at completion of the project would be $12 million.

1. what is the marginal cost (Marginal Cost) of continuing with the project?

2. What is the marginal benefit (Marginal Benefit) of continuing with the project?

3. Should the company continue with project (Yes/No)?

4. It costs Company XYZ $20 to make 4 beach towels and $24 to make 5 beach towels. What is the marginal cost of making the 5th towel?
Marginal Cost for the 5th towel =

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number.include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?