# Answer in Microeconomics for Joseph #112706

Solution

Given:

Fixed fee per month = \$16.99

quantity of DVD received = 3 DVD

Average cost = “frac{total fixed fee}{quantity of DVD}”

=total fixed fee per month /quantity of DVD received

=    “frac{\$16.99}{3}”

= \$16.99 / 3

= \$5.663

This means that the average cost for 1 DVD is \$5.663

In 2010, Sarita received and watched 6 movies sent to her through the mail, therefore she need to pay an additional cost for 3 DVD.

It is being said that She also receives unlimited instant access to movies being streamed from Netflix to her computer or TV, for this reason, no additional cost will be charge for 13 movies which were streamed to her computer.

The cost for 6 DVD = “{6}* {\$5.663}” = \$33.98

Marginal cost = change in cost/ change in quantity demanded

“frac{change in cost}{change in quantity demanded}”

= “frac{[\$33.98 – \$16.99]}{6u22123}” = “frac{16.99}{3}” = \$5.663

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