How is the relative price (MRT) of T with respect to S expressed ?
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Answer: A. 2
Explanation
The marginal rate of transformation expresses the opportunity cost ratio between goods. A value of two indicates that producing one additional unit requires sacrificing two units. This numerical ratio reflects the slope of the production possibilities frontier. The production possibilities frontier illustrates trade-offs in an economy. MRT measures how many units of one good must be given up for another. Diminishing marginal returns cause the MRT to increase along the curve.
Nations use trade agreements to bypass domestic marginal rates of transformation. Resource allocation decisions depend on calculating accurate opportunity cost ratios. Production efficiency requires equating the MRT to relative market prices. Option B inverts the required ratio of substitution between products. Option C represents an arbitrary numerical figure unrelated to this calculation. Option D provides an oversized integer that misrepresents standard frontier slopes.
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