Thomas Malthus reasoned that because amount of land is fixed, as population grows and more and more labour is applied to land, the productivity of labour in food production would decline, leading to widespread famine, Malthus’s prediction failed to materi
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Thomas Malthus reasoned that because amount of land is fixed, as population grows and more and more labour is applied to land, the productivity of labour in food production would decline, leading to widespread famine, Malthus’s prediction failed to materialise as advances in technology greatly increased labour productivity in food production. Do such technological advances contradict the law of diminishing marginal returns? Why do you think the motorcar production exhibits strong economies of scale but not the trucking (haulage) industry?
