What is the Slope of PPC? What does it show? - Vidyadip

Question

What is the Slope of PPC? What does it show?

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Answer

Slope of PPC refers to MRT (marginal rate of transformation). It shows the amount of Good-Y that needs to be sacrificed for producing every additional unit of Good-X. Slope of PPC = $\frac{\Delta Y}{\Delta X}$
It is also called marginal opportunity cost.

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