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The Marginal Rate of Transformation Where Goods X and Y

Question 50

Multiple Choice

The marginal rate of transformation where goods X and Y are produced by an economy using capital and labor as inputs equals


A) X/Y.
B) w/r, where w is the wage and r is the rental rate of capital.
C) MPL/MPK, where L stands for labor and K stands for capital.
D) MCX/MCY

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