The rate of which one input can be traded for another at a point along the production possibilities frontier is called the
A)marginal rate of technical transformation
B)marginal rate of technical substitution
C)marginal rate of substitution
D)marginal reduction rate

Question

Quizplus · Accepted Answer

The marginal rate of technical transformation refers to the rate at which one input can be transformed into another while still producing the same level of output. It is a crucial concept in production theory and is directly related to the shape of the production possibilities frontier. It helps firms determine the most efficient combination of inputs to use in production and is therefore the best choice among the given options.

The Rate of Which One Input Can Be Traded for Another