Give up for one extra unit of X and still remain Refers to the amount of Y that a nation could Marginal rate of substitution MRS of X for Y
Higher curves refer to greater satisfaction That yield equal satisfaction to the community. The various combinations of two commodities MRT increases as more units of good X areĪ community indifference curve (CIC) shows The value of MRT is given by the PPF Slope. MRT is another name for opportunity cost. Give up to produce each additional unit of X. Y refers to the amount of Y that a nation must Marginal rate of transformation MRT of X for (curve XAY) rather than a straight line (XY).
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