At the video store, Lucian narrows his selection to either a $2 videocassette of The Evil Dead or a
$4 DVD of Finding Nemo.Lucian finally flips a coin to decide which movie to rent.This must mean that Lucian's marginal rate of substitution of The Evil Dead for Finding Nemo is 0.5.False

Question

Quizplus · Accepted Answer

Lucian's marginal rate of substitution (MRS) is 0.5 because he is indifferent between the two options, as indicated by his decision to flip a coin. This implies he values the $2 videocassette of The Evil Dead equally to the $4 DVD of Finding Nemo, suggesting an MRS of 0.5 (2/4).

At the Video Store, Lucian Narrows His Selection to Either