Refer to the figure above. In autarky equilibrium, the relative price is given by the slope of the production possibility frontier at point

Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the:

a. marginal utility of the next haircut would be zero or negative. b. marginal utility of the next haircut would increase. c. marginal utility of the next haircut would be zero or positive. d. total utility of both haircuts would be zero or negative. e. total utility of both haircuts would be higher than just one haircut.

At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:

a. greater than 1. b. maximum. c. less than 1. d. equal to zero.