Question

what are the properties of transformation curve

Answer 1

The transformation curve is defined, in international economics, as the maximum amount of commodity X obtainable for any given amount of commodity Y, and vice versa. This concept is basically the same as the production-possibility frontier studied in microeconomics. In this case, however, the transformation curve shows the trade-off (or opportunity cost) for a country when deciding to produce one commodity or good instead of some other.