Answer to Question #127175 in Microeconomics for SUDIPTA

Question

is moc and mrt are same

Answer 1

Is MOC and MRT are same?

Marginal Opportunity Cost can be defined as the number units of a good forgone in order to gain extra units of another commodity. While on the other hand Marginal Rate of Transformation refers to the ratio of a good that is sacrificed to produce more of the other good.

From the above-stated definitions, it is right to conclude that there is no difference between Marginal Opportunity Cost and Marginal Rate of Transformation since the amount of sacrifice made in production is one.