The marginal rate of transformation is the
A) slope of the production possibility frontier.
B) dollar value of the best forgone alternative.
C) process of using resources to produce new capital.
D) transformation of resources into a form that is useful to people.

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is indeed the slope of the production possibility frontier (PPF), which represents the rate at which one good can be substituted for another while keeping the level of production constant. It reflects the opportunity cost of reallocating resources between the production of two goods.

The Marginal Rate of Transformation Is the