what is the difference between MRS(marginal rate of transformation), MRS(marginal rate of substitution), MOC(marginal opportunity cost)?
MARGINAL OPPURTUNITY COSTrefers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
MARGINAL RATE OF SUBSTITUTION is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ration of the Marginal Utilities of the 2 goods.MARGINAL RATE OF TRANSFORMATION is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit ( by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.