Question

Explain the concept of Marginal Rate of transformation with the help of a numerical example.

Answer 1

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. Marginal rate of transformation can also be referred to as the opportunity cost

Answer 2

Answer:MRT is the ratio of number of units of a commodity sacrificed to gain an additional units of another commodity.

MRT=change in units sacrificed/change in units gained