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 B to Point A is
A) -2/3.
B) -3/4.
C) -1.5.
D) -20.

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 B to Point A is
A) -2/3. 
B) -3/4. 
C) -1.5. 
D) -20.

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is the rate at which one good can be transformed into another good. In this case, the MRT is the rate at which wheat can be transformed into cloth. Moving from Point B to Point A, the economy can produce more wheat and less cloth. The MRT is calculated as the change in wheat production divided by the change in cloth production. In this case, the change in wheat production is 20 bushels and the change in cloth production is 30 yards. Therefore, the MRT is -20/30 = -2/3.

Refer to the Information Provided in Figure 2