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
The correct answer is: 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).