--%>
Assignment Help - homework help

Marginal Rate of transformation

Define? Marginal Rate of transformation?? Describe with the help of an illustration.

E

Expert

Verified

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.

   Related Questions in Microeconomics

  • Q : Monopsonistic Exploitation Can someone

    Can someone help me in finding out the right answer from the given options. The employer with monopsony power exploits the labor if it pays a wage: (i) At a bare subsistence level. (ii) That stabilizes worker population. (iii) Less

    		•
  • Q : Market supplies of labor withinin long

    During the long run, the labor supply curve facing a main industry: (w) will always be positively associated to the wage rate. (x) will slope upward only when individual labor supply curves slope upward. (y) can be backward bending at very high wage r

    		•
  • Q : Find price elasticity of demand for

    Suppose yearly steel sales double to 80 million tons while the price falls $40 per ton, to $180 per ton. Therefore price elasticity of demand for steel is approximately: (w) 3.333. (x) 10.000. (y) 2.500. (z) 6.667.

    Q : Market price below equilibrium price

    When the market price is beneath the equilibrium price then: (i) The market will clear. (ii) An excess exists. (iii) Consumers will not invest. (iv) The shortage exists. (v) Each and every consumer will be satisfied. Find out the r

    		•
  • Q : Changes in Household Demand The changes

    The changes in a household’s tastes most directly influence the families: (1) Number of members. (2) Demands for goods. (3) Total wealth. (4) Income constraint. Can someone please help me in finding out the a

    		•
  • Q : Problem on opportunity cost of consumer

    Refer to the given table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:

  • Q : Price takers in product market I have a

    I have a problem in economics on Price takers in product market. Please help me in the following question. Relative to firms which are price takers in product market, and then firms with market power tend to. (1) Hire some workers (2) Pay a lower wage

    		•
  • Q : Problem on decline in demand function

    In the month of January, Disney World in Florida cut its ticket prices into half and starts letting all kids beneath age five without charge. The economic forecaster might reasonably expect: (1) A decline in demand for the tickets to Disney Land in California. (2) A r

    		•
  • Q : Pure monopoly firm operates in purely

    In spite of of whether a firm is a pure monopoly or operates within a purely competitive industry as: (i) this should expect total revenue to cover total variable costs or this will not operate. (ii) the demand curve this faces will be horizontal in t

    		•
  • Q : Profit Maximization-total proceeds and

    The entire profit maximizing organization will hire more labor up to the point where: (w) Average physical product of labor equivalents the nominal wage. (x) Last unit of labor adds uniformly to net revenue and net cost. (y) Marginal product of the labor is at its hig

    		•