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Comment upon the shape of production possibility curve, if the marginal rate of transformation is constant.

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प्रश्न

Comment upon the shape of production possibility curve, if the marginal rate of transformation is constant.

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उत्तर

If the MRT is constant, the PPC is a downward-sloping straight line. This means the same quantity of one good is sacrificed for every additional unit of the other, which occurs when resources are equally efficient in producing both goods.

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पाठ 1: Introduction - REVISION EXERCISE [पृष्ठ १.४४]

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संदीप गर्ग Introductory Microeconomics [English] Class 11
पाठ 1 Introduction
REVISION EXERCISE | Q 29. | पृष्ठ १.४४
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