The assumption on consumption sets that states that it is possible to add consumption bundles is called
A) the divisibility assumption
B) the additivity assumption
C) convexity

Question

Quizplus · Accepted Answer

The additivity assumption states that it is possible to add consumption bundles. It is a key assumption in microeconomics and is used to define indifference curves and budget constraints. The other options, divisibility and convexity, are related concepts but do not directly refer to the ability to add consumption bundles.

The Assumption on Consumption Sets That States That It Is