What is marginal rate of transformation Marginal rate of transformation can be defined as extra unit of one product added to get results of extra unit of another good. It is always represented in number because units always measured in number. Marginal rate of transformation means in economic as the process of number of input units or goods amounts forgone to create new goods or attains new units of goods. MRTs studied under production economic. MRTS tells economic researchers to evaluate rate of transformation of one goods units as input raw material for the manufacturing of new units of products or goods. Marginal rate of transformation formula can be written as marginal cost of producing another unit of goods divided by resources freed up by cutting production of another unit. Economist states that marginal rate of transformation as rate of transformation of one units changed to produce new goods units. Definition of marginal rate of transformation further explanation with help of an example. Extra number of unit of good of company A used for producing extra number unit of good of company D. Production factors remain constant during whole production process . The marginal rate of transformation (MRT) is a crucial economic concept that aids in understanding the opportunity cost associated with production decisions. By calculating the MRT, economists and decision-makers can analyze trade-offs, make informed choices about resource allocation, and optimize production possibilities. From the name it already it talking about transformation of goods. Marginal rate of transformation made of three economics related word i.e. Marginal+Rate+Transformation Marginal word in economics meaning that change in production output after adding of extra single number of input unit. Rate word in economics meaning that it represents frequency of change of good during economic period. Transformation in economics meaning that change in physical form of goods A to goods B after processing. Importance of marginal rate transformation There are many key importance of marginal rate of transformation in production economics. In marginal rate of transformation opportunity cost used for producing extra unit of good after consumption of extra single unit of input. Opportunities cost always focus to increase utility of scare resources. Marginal rate of transformation (MRT) in production possibility curve as absolute value. Marginal rate of transformation total focuses on supply because in MRT tell us about production rate and used in economics to show production of goods of company. How to calculate marginal rate of transformation In economics marginal rate of transformation used to denote production supply on production possibility curve. One question asked by many economic students how do you calculate MRT is calculated? You can calculate (MRT) marginal rate of transformation by using this economics formula given below. Marginal rate of transformation (MRT) = MCx / MCy It is