IDNLearn.com connects you with a community of knowledgeable individuals ready to help. Discover prompt and accurate responses from our experts, ensuring you get the information you need quickly.
Sagot :
The absolute value of the slope of the production possibility frontier at any point gives the quantity of the good on the vertical axis that must be given up producing an additional unit of the good on the horizontal axis. (Option C)
The marginal rate of transformation (MRT) enables the economists to evaluate the opportunity costs to produce one extra unit of something. MRT refers to the absolute value of the slope of the production possibility frontier. The production possibility frontier (PPF) refers to a curve on a graph that demonstrates the possible quantities that can be produced of two products if both depend upon the same finite resource. For each point on the frontier displayed as a curved line, there is a different marginal rate of transformation, and this rate is based on the economics of producing the two goods. Hence, MRT is equal to the opportunity cost of an additional unit of the good on the horizontal axis.
Note: The question is incomplete as it is missing options which are A) gives the autarky price of the good on the vertical axis. B) is found by dividing the horizontal change by a vertical change. C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis. D) gives the autarky price of the good on the horizontal axis relative to the autarky price of the good on the vertical axis.
Learn more about Production possibility frontier:
https://brainly.com/question/25071524
#SPJ4
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. IDNLearn.com is committed to providing the best answers. Thank you for visiting, and see you next time for more solutions.
