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| 1. |
What is Marginal Rate of Transformation ? Explain with help of an example. |
| Answer» <html><body><p></p>Solution :MRT is the <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> at which the unis of one good have to be sacrificed to produce one more <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 the other good in a twe good in a two goods <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a>. <br/> Suppose an economy produces only two goods X and Y. Further suppose that by <a href="https://interviewquestions.tuteehub.com/tag/employing-970701" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYING">EMPLOYING</a> these resources fully and efficiently, the economy 1X + 10Y. If the economy decides to produce 2X it has to cut down production of Y by 2 <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a>. Then 2T is the oportunity 1X. Then 2Y:1X is the MRT.</body></html> | |