As you move up the production possibility frontier, the absolute value of the marginal rate of transformation
A) increases.
B) decreases.
C) initially increases, then decreases.
D) initially decreases, then increases.

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) represents the rate at which one good must be sacrificed to produce an additional unit of another good. As you move up the production possibility frontier (PPF), which typically has a concave shape to represent increasing opportunity costs, the absolute value of the MRT increases because more of one good must be given up to produce additional units of the other good, reflecting the law of increasing opportunity costs.

As You Move Up the Production Possibility Frontier, the Absolute