Toby Talkalot Subscribes to a Local Phone Service That Charges

question 44

Multiple Choice

Toby Talkalot subscribes to a local phone service that charges a fixed fee of $10 per month and allows him to place as many local phone calls as he likes without further charge. Let good 1 be an aggregate of commodities other than local phone use and let good 2 be local phone use. (Measure good 1 on the horizontal axis and good 2 on the vertical axis.) On Monday, Toby didn't use the telephone at all. The slope m of his indifference curve at the consumption bundle he chose on Monday was

• A) positive.
• B) less than or equal to 0.
• C)0.
• D) greater than or equal to 0.
• E) negative.

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Definitions:

Expressions

Mathematical phrases that can represent numbers, operations, and/or variables but do not include an equality sign.

Expressions

Mathematical phrases that can contain numbers, variables, operators and can be evaluated to a value.

Complex Fraction

A fraction in which the numerator, the denominator, or both contain fractions themselves.

Simplify

The process of expressing a mathematical expression in a more concise and understandable form, often by combining like terms or reducing fractions.