As you move down 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) increases in absolute value as you move down the production possibility frontier (PPF) due to the law of increasing opportunity costs, which states that to produce more of one good, increasingly larger amounts of the other good must be sacrificed.

As You Move Down the Production Possibility Frontier, the Absolute