What is the differene between MRS , MRT and MOC
Dear Student,
MRS stands for marginal rate of substitution. It is the slope of IC curve.It is the rate at which a consumer is willing to give up one good in order to get another good.It slopes downward.
MRT stands for marginal rate of transformation. It is the slope of PPC curve.It is the rate at which a producer have to sacrifice units of one good in order to produce more of another Good.
MOC stands for Marginal opportunity cost. It is the cost which a person gets to sacrifice one good in order to obtain more units of other good.
Hope this information will clear your doubts about this topic.
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MRS stands for marginal rate of substitution. It is the slope of IC curve.It is the rate at which a consumer is willing to give up one good in order to get another good.It slopes downward.
MRT stands for marginal rate of transformation. It is the slope of PPC curve.It is the rate at which a producer have to sacrifice units of one good in order to produce more of another Good.
MOC stands for Marginal opportunity cost. It is the cost which a person gets to sacrifice one good in order to obtain more units of other good.
Hope this information will clear your doubts about this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards