The assumption that states that, if we can produce an output of x using one combination of inputs and another level of output of y using another combination of these inputs, then we can feasibly produce the output x + y is known as the
A) additivity assumption
B) divisibility assumption
C) convexity assumption

Question

Quizplus · Accepted Answer

The additivity assumption states that the total output is the sum of the individual outputs produced by each combination of inputs. This assumption is commonly used in economics and production theory. The other options, divisibility and convexity assumptions, are not relevant in this context.

The Assumption That States That, If We Can Produce an Output