Marginal Rate of transformation
Define? Marginal Rate of transformation?? Describe with the help of an illustration.
Expert
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.
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The Christmas tree farm’s short-run shut-down point arises at a price of: (i) P1. (ii) P2. (iii) P3. (iv) P4. (v) Not computable from these figures. Discover Q & A Leading Solution Library Avail More Than 1418050 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1954750 Asked 3,689 Active Tutors 1418050 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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