On the characterization of efficient production vectors (Q873904)

The authors provide a necessary and sufficient condition for points of the boundary of a production set to be efficient. It works even if the production set is not convex. The condition involves the production plans on the boundary and it is clearly satisfied when the production set is strictly convex. They show that this condition is incompatible with a standard assumption on the production set, which states that there is a differentiation of the inputs and the outputs.