The marginal rate of transformation (MRT)of X for Y refers to:
A)the amount of X that a nation must give up to produce each additional unit of Y.
B)the amount of X that consumers are willing to give up to consume each additional unit of Y.
C)the amount of Y that consumers are willing to give up to consume each additional unit of X.
D)the amount of Y that a nation must give up to produce each additional unit of X.

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) of X for Y refers to the amount of Y that a nation must give up to produce each additional unit of X. This is because it represents the opportunity cost of producing one additional unit of X in terms of the output of Y that must be foregone. The other choices are incorrect because they refer to consumer preferences rather than production possibilities.

The Marginal Rate of Transformation (MRT)of X for Y Refers