Question

The marginal rate of transformation of x for y represents:__________
A) the rate at which the consumer must give up y to get one more x.
B) Px/Py.
C) the slope of the budget constraint.
D) All of the above.

Answer 1

Answer:

D) All of the above.

Explanation:

The marginal rate of transformation is the rate at which the consumer must give up y to get an additional unit of x. it is also referred to as the the slope of the budget constraint.

It can also be expressed mathematically as: Px/Py.

The answer is (D) All of the above.