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Which of the following is the correct expression of Marginal Rate of Transformation?
- a)2Y for 1X
- b)1:2
- c)2:1
- d)2Y
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Which of the following is the correct expression of Marginal Rate of T...
Marginal rate of transformation
The marginal rate of transformation (MRT) can be defined as how many units of good x have to stop being produced in order to produce an extra unit of good y, while keeping constant the use of production factors and the technology being used. It involves the relation between the production of different outputs, while maintaining constant the same level of production factors. It can be determined using the following formula:
The MRT is related to the production possibility frontier (PPF). The slope of the curves shows how a reallocation of the production can end with a different bundle of production, using the same quantity of inputs. Two of the most commonly used PPFs are depicted in the adjacent figure.
In the first graph, the MRT will change along the curve.
The second graph, which portrays the case of perfect substitutes output, that is the slope has an angle of 45DEG with each axis and therefore we have MRT = 1. When considering different substitutes goods, the slope will be different and the MRT can be defined as a fraction, such as 1/2 ,1/3, and so on. For perfect substitutes, the MRT will remain constant.
Most Upvoted Answer
Which of the following is the correct expression of Marginal Rate of T...
The Marginal Rate of Transformation (MRT) is defined as the rate at which one good is exchanged for another good, while keeping the level of satisfaction of the consumer constant. It is also known as the slope of the production possibility curve.
The correct expression of Marginal Rate of Transformation is 1:2.
Explanation:
MRT is expressed as the ratio of the amount of one good that must be given up to produce an additional unit of another good. In this case, the ratio is 1:2, which means that to produce one additional unit of good X, 2 units of good Y must be given up. This implies that the opportunity cost of producing one unit of good X is 2 units of good Y.
Therefore, the correct expression for MRT is option B, which is 1:2.
The correct expression of Marginal Rate of Transformation is 1:2.
Explanation:
MRT is expressed as the ratio of the amount of one good that must be given up to produce an additional unit of another good. In this case, the ratio is 1:2, which means that to produce one additional unit of good X, 2 units of good Y must be given up. This implies that the opportunity cost of producing one unit of good X is 2 units of good Y.
Therefore, the correct expression for MRT is option B, which is 1:2.
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Which of the following is the correct expression of Marginal Rate of T...
I think the answer must be 2:1 as MRT is ratio of no of commodity sacrifice to gain ONE additional unit of another commodity
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Which of the following is the correct expression of Marginal Rate of Transformation?a) 2Y for 1Xb) 1:2c) 2:1d) 2YCorrect answer is option 'B'. Can you explain this answer?
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