Question

When some resources are shifted from Good1 to Good2 {given technology}, the marginal rate of transformation:

Answer 1

Answer:

When some resources are shifted from Use-1 to Use-2( given technology and resources) the marginal rate of transformation increases, as per the concept of Production possibility curve.Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity is sacrificed that results in increasing marginal opportunity cost or marginal rate of transformation.  

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Explanation: