Calculating Marginal Rate of Transformation (MRT) | Production Possibility Curve | Microeconomics
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Calculating Marginal Rate of Transformation (MRT) | Production Possibility Curve | Microeconomics
The marginal rate of transformation (MRT) is calculated as the marginal cost of producing another unit of a good divided by the resources freed up by cutting production of another unit. The MRT is the marginal cost of production for good X in the formula above, divided by the marginal cost of production for good Y. Learn how to calculate the ...
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