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:

Question

Quizplus · Accepted Answer

Since Bonnie is already very happy with her haircut from her usual salon, the marginal utility of getting another haircut for free would most likely be zero or negative. There would be no additional satisfaction gained from the second haircut and it might even be a hassle to have another person cut her hair so soon after getting it done. Thus, it would not make sense for Bonnie to take advantage of the giveaway.

Bonnie Gets Her Hair Cut at Her Usual Salon and Is