Toby Talkalot Subscribes to a Local Phone Service That Charges

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.

Correct Answer:

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