Chapter 7.2, Problem 57E

To determine

To Explain: Under what conditions would a person choose one provider over the other?

Answer to Problem 57E

The person choose package of $12$ months as the months increase the average monthly cost reduce.

The person choose first package if he wants minimum amount of cost.

Explanation of Solution

Given:

  

The function becomes

  $C=\frac{43x+50}{x}$

Then

For six months

  $C=\frac{43(6)+50}{(6)}=51.3$

For twelve months

  $C=\frac{43(12)+50}{(12)}=47.16$

For eighteen months

  $C=\frac{43(18)+50}{(18)}=45.77$

For twenty four months

  $C=\frac{43(24)+50}{(24)}=45.0$

The person choose package of $12$ months as the months increase the average monthly cost reduce.

The person choose first package if he wants minimum amount of cost