Why does mrt rises
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Yogita Ingle 6 years, 7 months ago
MRT shows that as more of Good X (represented on x-axis) is produced, the loss from Good Y( represented on y-axis) tends to increases on EVERY addition of Good X. MRT basically shows the loss occurred when resources are shifted from Good Y to Good X. This loss increases because resources are USE SPECIFIC. Meaning, that they are specifically suited to production of specific uses.
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