marginal rate of transformation
- noun the rate at which production of one product can take the place of the production of another product by switching inputs
- acronymMRT (written as Marginal rate of transformation)
- marginal rate of transformation.
- (written as Marginal Rate of Transformation)The slope of a production possibilities curve. It shows the maximum (minimum) increase (decrease) in the rate of output of one good that is possible for any reduction (increase) in the rate of output of another, given a fixed stock of resources and a given technology of production.