Question

What is marginal rate of transformation give example?

Answer 1

Answer:

The marginal rate of transformation (MRT) can be defined as how many units of good x have to stop being produced in order to produce an extra unit of good y, while keeping constant the use of production factors and the technology being used.

Example

Example of How to Use the Marginal Rate of Substitution. For example, a consumer must choose between hamburgers and hot dogs. In order to determine the marginal rate of substitution, the consumer is asked what combinations of hamburgers and hot dogs provide the same level of satisfaction.