The transformation curve slopes indicate that

Economics

WAEC 2008

A. opportunity cost of producing one commodity for another
B. opportunity cost of producing two commodities at a time
C. sales of the plants to other investors
D. decrease in the cost of production

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Correct Answer: Option A

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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