what is the marginal rate of transformation mrt 
the marginal rate of transformation mrt is the number of units or amount of a good that must be forgone to create or attain one unit of another good it is the number of units of good y that will be foregone to produce an extra unit of good x while keeping the factors of production and technology constant formula and calculation of the marginal rate of transformation mrt mrt m c x m c y where m c x money needed to produce another unit of x m c y rate of increase by cutting production of y begin aligned text mrt frac mc x mc y textbf where mc x text money needed to produce another unit of x mc y text rate of increase by cutting production of y end aligned mrt mcy mcx where mcx money needed to produce another unit of xmcy rate of increase by cutting production of y so the ratio tells you how much y you need to give up to produce another x the marginal rate of transformation mrt is calculated as the marginal cost of producing another unit of a good divided by the resources freed up by cutting production of another unit the mrt is the marginal cost of production for good x in the formula above divided by the marginal cost of production for good y 