# Marginal rate of transformation

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The **marginal rate of transformation** is the amount by which one output can be increased if another is reduced by a small amount, per unit of the decrease, holding total inputs constant. The marginal rate of transformation for good X in inputs K and L equals the ratio of the first partial derivative of the production function of X to K over the first partial derivative of the production function of X to L. More succinctly, the marginal rate of transformation is the ratio of marginal products.