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Marginal Rate of Transformation: The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of ..........
  • a)
    another good, assuming that both goods require the same scarce inputs.
  • b)
    same good, assuming that both goods require the different scarce inputs.
  • c)
    same good, assuming that both goods require the same scarce inputs.
  • d)
    another good, assuming that both goods require the different scarce inputs.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Marginal Rate of Transformation:The rate at which one good must be sac...
The marginal rate of transformation (MRT) is the rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of another good, assuming that both goods require the same scarce inputs.
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Marginal Rate of Transformation:The rate at which one good must be sac...
Marginal Rate of Transformation (MRT) is the rate at which one good must be sacrificed in order to produce a single extra unit of another good, assuming that both goods require the same scarce inputs. In other words, it represents the opportunity cost of producing one more unit of a good in terms of the number of units of another good that must be given up.

Explanation:
MRT is a concept used in production theory to analyze the efficiency of resource allocation. It is an important tool for economists to understand the relationship between the production of two goods. MRT is calculated by dividing the amount of one good that must be foregone to produce an additional unit of another good.

For example, suppose a company produces two goods, X and Y, using the same resources. If the company can produce 10 units of X and 15 units of Y, then the MRT of X for Y is 1.5. This means that to produce one more unit of Y, the company must give up 1.5 units of X.

MRT can be represented as a curve called the Production Possibility Frontier (PPF). PPF shows the maximum possible combinations of two goods that can be produced with the available resources. The slope of the PPF represents the MRT. It is a straight line when the MRT is constant and a curved line when the MRT changes.

Conclusion:
In conclusion, the Marginal Rate of Transformation is an essential concept in economics. It helps in understanding the relationship between the production of two goods and the opportunity cost of producing one more unit of a good in terms of the number of units of another good that must be given up.
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Marginal Rate of Transformation:The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of ..........a)another good, assuming that both goods require the same scarce inputs.b)same good, assuming that both goods require the differentscarce inputs.c)same good, assuming that both goods require the same scarce inputs.d)another good, assuming that both goods require the different scarce inputs.Correct answer is option 'A'. Can you explain this answer?
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Marginal Rate of Transformation:The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of ..........a)another good, assuming that both goods require the same scarce inputs.b)same good, assuming that both goods require the differentscarce inputs.c)same good, assuming that both goods require the same scarce inputs.d)another good, assuming that both goods require the different scarce inputs.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Marginal Rate of Transformation:The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of ..........a)another good, assuming that both goods require the same scarce inputs.b)same good, assuming that both goods require the differentscarce inputs.c)same good, assuming that both goods require the same scarce inputs.d)another good, assuming that both goods require the different scarce inputs.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Marginal Rate of Transformation:The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of ..........a)another good, assuming that both goods require the same scarce inputs.b)same good, assuming that both goods require the differentscarce inputs.c)same good, assuming that both goods require the same scarce inputs.d)another good, assuming that both goods require the different scarce inputs.Correct answer is option 'A'. Can you explain this answer?.
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