Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5
-Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A) -2/3.
B) -1.5.
C) -3.
D) -30.

Question

Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.  Figure 2.5
-Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A) -2/3. 
B) -1.5. 
C) -3. 
D) -30.

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is calculated as the slope between two points on a production possibility frontier, which is the change in Y over the change in X. Moving from Point A to Point B, if the production of good Y decreases by 3 units and the production of good X increases by 2 units, the MRT is -3/2 or -1.5.

Refer to the Information Provided in Figure 2