Nineteenth-century British economist Thomas Malthus reasoned that because the amount of land is fixed, as population grows and more labor is applied to land, the productivity of labor in food production would decline, leading to widespread famine. This prediction is what led economics to be called the “dismal science.” Malthus’s prediction failed to come to pass as advances in technology, such as the Green Revolution, greatly increased labor productivity in food production. Do such technological advances contradict the law of diminishing marginal returns?
Answer to relevant QuestionsIn the early days of People Express‚ the top management team at the airline was personally involved in the training and selection of employees. This participation was key to instilling spirit and dedication among the ...“Every point on Ford’s long-run cost curve corresponds to a point on some short-run cost curve, but not every point on one of Ford’s short-run cost curves corresponds to a point on the long-run cost curve.” Explain.What are the four assumptions of the perfectly competitive model? Critics are fond of pointing out that few, if any, real- world markets satisfy all four conditions, implying that the competitive model has little relevance ...“If Conagra is a competitive firm, it will never operate at an output where its average total cost curve is downward sloping.” True or false? Explain.Suppose that the gasoline industry is competitive and constant-cost. Suppose also that, due to an unexpected increase in demand, the industry’s firms are making short-run economic profits. Using graphs depict what would ...
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