Hi guys, could someone please explain, if we have a wage of 2 per hour, and cost of consumption is 2, does that mean that the MRT is 1, or is it 2? Logically it would be 1, because by giving up 1 hour of free time you could work to get 1 unit of consumption, but the textbook says it is equal to wage, though I would assume that it is implied for when consumption cost is 1 per unit.
Thank you very much in advance to anyone who could help to sort this out.
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Marginal Rate of Transformation watch
- Thread Starter
- 19-10-2017 20:09