based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth.
-In India the price of machines in terms of cloth (marginal rate of transformation) is:
A) 1M = 5C.
B) 1M= 4C.
C) 1M= 3C.
D) 1M = 2C.
E) 1M = 1C

Question

Quizplus · Accepted Answer

In India, a worker can produce 1 machine or 5 yards of cloth per day. Therefore, the opportunity cost of producing 1 machine is 5 yards of cloth, making the marginal rate of transformation 1M = 5C.

Based on the Following Information