The Marginal Rate of Transformation Where Goods X and Y $X / Y$

question 27

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) \(M P _ { L } / M P _ { K }\), where \(L\) stands for labor and \(K\) stands for capital.
• D) \(M C X / M C y\)

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