Marginal Rate of Transformation (MRT): Definition and Calculation
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Marginal Rate of Transformation (MRT): Definition and Calculation
The marginal rate of transformation (MRT) is the number of units or amount of a good that must be forgone to create or attain one unit of another good. It 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 allows economists to analyze the ...
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