A manufacturing company had been under pressure to increase profits, so it began to produce additional goods. The company was encouraged by the
initial increases in revenue, even though profits per item produced were lower
than average. Still, total profits increased, so the company decided to make
another significant increase in production. This time, however, the profit per
item had decreased so much that the company made almost no extra profit
from the increase in production. This situation illustrates what concept?
A. Law of diminishing returns
O B. Cross-training
O C. Productivity analysis
D. Comparative advantage

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?