Marginal Rate of transformation
Define? Marginal Rate of transformation?? Describe with the help of an illustration.
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Marginal Rate of transformation or MRT is the rate at which the units of one good encompass to be sacrificed to generate one more unit of another good in a two goods economy.
Assume an economy generates only two goods X and Y. Moreover assume that by employing such resources completely and efficiently, the economy generates 1X + 10Y. If the economy decides to generate 2X, it has to cut down its production of Y by 2 units. Then 2Y is the opportunity cost of generating 1X. Then 2Y:1X is the MRT.
Firms which agreed to hire only workers who were already the union members would be operating: (1) Agency shops. (2) Bilateral monopolies. (3) Monopsonistic shops. (4) Union shops. (5) Closed shops. Choose the right answer from the
Both demand and supply of hamburgers would plummet in short run, as would be quantity sold, however we can’t be certain how the price would adjust when: (i) 75 % of the population became serious vegetarians. (ii) People abruptly decreased their intake of milk pr
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The positively sloped supply curves exhibit relationships which: (1) Follow from law of demand. (2) Are positive between quantity supplied and price. (3) Are negative between price and the quantity sold. (4) Exist for services however not goods.
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