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.

Question

Quizplus · Accepted Answer

The fact that Lucian was willing to leave the decision to a coin flip means that he was indifferent between the two options, and therefore the marginal rate of substitution of The Evil Dead for Finding Nemo must have been 0.5.

At the Video Store,Lucian Narrows His Selection to Either a $2