The Assumption That States That, If There Is a Production

question 5

Multiple Choice

The assumption that states that, if there is a production activity y that produces a certain amount of output z using capital and labor in particular amounts and another activity w that produces the same quantity using different amounts of these inputs, then we can always produce at least z by mixing these activities and using y a fraction of the time and w a fraction of the time is known as the

• A) additivity assumption
• B) divisibility assumption
• C) convexity assumption