Refer to the information provided in Figure 2.3 below to answer the question(s) that follow. Figure 2.3
-Refer to Figure 2.3. Assume that this society's production possibility frontier is represented by Panel C. The marginal rate of transformation of sailboats for surfboards is
A) 1/10.
B) -1/10.
C) 10.
D) -10.

Question

Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.  Figure 2.3
-Refer to Figure 2.3. Assume that this society's production possibility frontier is represented by Panel C. The marginal rate of transformation of sailboats for surfboards is
A) 1/10. 
B) -1/10. 
C) 10. 
D) -10.

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is the slope of the production possibility frontier (PPF). In Panel C, if the MRT is -10, it means that for every 10 surfboards produced, 1 sailboat is given up, indicating a trade-off rate of 10 surfboards per sailboat.

Refer to the Information Provided in Figure 2