The marginal rate of transformation represents the slope of the production possibility frontier.

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) represents the amount of one good that must be given up in order to produce an additional unit of another good. This is essentially the slope of the production possibility frontier, which shows the various combinations of two goods that can be produced with a given set of resources. Therefore, the statement is true.

The Marginal Rate of Transformation Represents the Slope of the Production