A country produces two commodities: X and Y. Its production possibilities are shown in the following table: (a) Calculate marginal rate of transformation (MRT) (b) Construct a PPF with the help of the various possibilities, (c ) Comment on the shape of PPF along with its reason.

A country produces two commodities: X and Y. Its production possibilit

1.	A country produces two commodities: X and Y. Its production possibilities are shown in the following table: (a) Calculate marginal rate of transformation (MRT) (b) Construct a PPF with the help of the various possibilities, (c ) Comment on the shape of PPF along with its reason.
Answer» <html><body><p></p>Solution :(a) <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_007_S01.png" width="80%"/> <br/> (b) Figure 1.13 <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_007_S02.png" width="80%"/> <br/> (c ) <a href="https://interviewquestions.tuteehub.com/tag/ppf-592456" style="font-weight:bold;" target="_blank" title="Click to know more about PPF">PPF</a> is convex shaped <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to decreasing MRT, i.e., <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> and less units of <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> Y are sacrificed to gain an additional <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> of commodity X.</body></html>