When some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation:

increases

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

decreases

No worries! We‘ve got your back. Try BYJU‘S free classes today!

remains constant

No worries! We‘ve got your back. Try BYJU‘S free classes today!

is zero

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
increases

Marginal rate of transformation is the rate at which output of Good-Y is to be sacrificed for every additional unit of Good-X. Therefore, when some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation increases.

Suggest Corrections

Similar questions

1

2

1

2

Guns(Units)	0	1	2	3	4	5
Bread (Units)	30	28	24	18	10	0

U s e - 1

U s e - 2

1, 500

U s e - 1

R s . 1, 000

U s e - 2

1

2

Join BYJU'S Learning Program