The assumption that states that you cannot run a production process in reverse is called the
A) no free lunch assumption
B) nonreversibility assumption
C) divisibility assumption

Question

Quizplus · Accepted Answer

The nonreversibility assumption states that a production process cannot be run in reverse. This means that once a good or service has been produced, it cannot be "unproduced" or turned back into the inputs that were used to create it. This assumption is important in understanding the irreversibility of certain decisions and the cost of production. Choice A (no free lunch assumption) and Choice C (divisibility assumption) are not relevant to the concept of reversibility in production processes.

The Assumption That States That You Cannot Run a Production