Explain the concept of Marginal Rate of transformation with the help of a numerical example.
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hy dear
here is your answer
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The MRT is related to the production possibility frontier (PPF). The slope of the curves shows how a reallocation of the production can end with a different bundle of production, using the same quantity of inputs. Two of the most commonly used PPFs are depicted in the adjacent figure.
In the first graph, the MRT will change along the curve.
The second graph, which portrays the case of perfect substitutes output, that is the slope has an angle of 45º with each axis and therefore we have MRT = 1. When considering different substitutes goods, the slope will be different and the MRT can be defined as a fraction, such as 1/2 ,1/3, and so on. For perfect substitutes, the MRT will remain constant.
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i hope you undestand
here is your answer
==================
The MRT is related to the production possibility frontier (PPF). The slope of the curves shows how a reallocation of the production can end with a different bundle of production, using the same quantity of inputs. Two of the most commonly used PPFs are depicted in the adjacent figure.
In the first graph, the MRT will change along the curve.
The second graph, which portrays the case of perfect substitutes output, that is the slope has an angle of 45º with each axis and therefore we have MRT = 1. When considering different substitutes goods, the slope will be different and the MRT can be defined as a fraction, such as 1/2 ,1/3, and so on. For perfect substitutes, the MRT will remain constant.
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i hope you undestand
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