Question
(Malthusian economics)Consider a (small) community where the amount of grain harvested depends on the number of peasants farming a (small) agricultural plot, as shown in
(Malthusian economics)Consider a (small) community where the amount of grain harvested depends on the number of peasants farming a (small) agricultural plot, as shown in the table below. Each peasant needs 18 bushels of grain to survive (i.e. meet subsistence).
Original technology | New technology | ||||
Peasants | Total Product | Average Product | Total Product | Average Product | |
1 | 20 | ||||
2 | 36 | ||||
3 | 48 | ||||
4 | 56 | ||||
5 | 60 | ||||
6 | 60 |
How do you calculate the average product for the original technology in the above table.
In Malthus' model, what will be the population and the average product in equilibrium? Why?
Suppose these peasants discover a new grain that increases the total product by 50%. Calculate the total product and the average product for the new technology in the above table.
In Malthus' model, what will be the population and the average product be in equilibrium after the adoption of this new technology? Why?
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