-In the above figure, at the best affordable point, the marginal rate of substitution is
A) 1.33 hamburgers per magazine.
B) 0.5 of a hamburger per magazine.
C) 1 hamburger per magazine.
D) 8 hamburgers per magazine.

Question

-In the above figure, at the best affordable point, the marginal rate of substitution is
A) 1.33 hamburgers per magazine. 
B) 0.5 of a hamburger per magazine. 
C) 1 hamburger per magazine. 
D) 8 hamburgers per magazine.

Quizplus · Accepted Answer

The marginal rate of substitution is the rate at which a consumer is willing to trade one good for another while remaining on the same indifference curve. In this case, the consumer is willing to trade 1.33 hamburgers for one magazine.

-In the Above Figure, at the Best Affordable Point, the Marginal