What is MRT in very simple …

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Install Now

What is MRT in very simple language?

Posted by Sandeep Sharma 7 years, 6 months ago

CBSE > Class 12 > Economics

5 answers

Shivangi Goel 7 years, 6 months ago

MRT refers to opportunity cost per unit of additional output of good 2 when some resources are shifted from good1 to other good2... MRT is just the ratio bw loss of output and gain of output...

2Thank You

Priyanshu Dhupar 7 years, 6 months ago

MRT is just like MRS **********

1Thank You

Priyanshu Dhupar 7 years, 6 months ago

So MRS is just like MRS the differnce is just that mrs consumer is willing to sacrifice that much quantity. In mrt the market wants the consumer to sacrifice that quantity which means he has to sacrifice because of his fixed income He has to reduce expenditure in one commodity ( sacrifice ) to buy more of other

2Thank You

Priyanshu Dhupar 7 years, 6 months ago

Sorry i just explained MRS instead of MRT ??

1Thank You

Priyanshu Dhupar 7 years, 6 months ago

The rate at which the consumer is willing to sacrifuce unuts of one commodity to buy more of other . This basically means that what quantity of acommodity the consumer is willing to sacrifice to buy more of the other . And he has to sacrifice some quantity ,because if he does not sacrifice , the total quantity ( quantity of both goods will increase ) which means higher satisfaction but all points on indifference curve show same level of satisfaction

1Thank You

ANSWER