WAEC - Economics (2008 - No. 14)
The transformation curve slopes indicate that
opportunity cost of producing one commodity for another
opportunity cost of producing two commodities at a time
sales of the plants to other investors
decrease in the cost of production
Explanation
The transformation curve shows the amount of commodity X that the economy has to give up to obtain an additional unit of commodity Y (and vice versa). It simply shows the opportunity cost of producing one thing against another (the forgone alternative to get something else).
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