For the simple linear technology in (2), the marginal rate of transformation between any two goods indexed by [z.

With the marginal rate of transformation independent of z (from [14]), it is not possible for the marginal rate of substitution to be equated to the marginal rate of transformation for all combinations of [z.

From the standpoint of production, the total market price still represents the

marginal rate of transformation of movies for oranges ([MRT.

The

marginal rate of transformation between inflation and the output gap follows from the form of the aggregate-supply relation, including the slope of the short-run Phillips curve, [[alpha].

Similarly, the marginal cost, which presently equals the minimum wage w, equals the

marginal rate of transformation (i.

Each of the MCF expressions in equations (4) and (5), when multiplied by the

marginal rate of transformation [P.

When lump-sum taxes are available, the first-best rule for public good production requires that the sum of the marginal rates of substitution be equal to the

marginal rate of transformation (e.

The case for reliance on comparative advantage was well buttressed by theory: a Pareto optimum is achieved when the international

marginal rate of transformation equals the domestic

marginal rate of transformation.

Finally, the condition that the marginal rate of substitution in consumption equals the

marginal rate of transformation,