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When discussing the technology curve in our Malthusian model, we have assumed that natural resources are fixed. As a result, the marginal product of each
When discussing the technology curve in our Malthusian model, we have assumed that natural resources are fixed. As a result, the marginal product of each additional laborer is lower than that of the previous laborer. (a) Do you consider this a reasonable assumption for the preindustrial world? Briefly explain your answer. (b) Explain why this assumption leads to a negative slope for the technology curve relating population to income per capita. (c) Suppose that the marginal product of labor was actually constant: each additional worker adds just as much output as the previous worker did. Explain how an improve- ment in technology would impact total output, income per capita, and population size in the short run and the long run. Assume that births and deaths still follow our standard Malthusian assumptions (birth rate increases and death rate decreases as income goes up). Use both graphs and a written explanation to justify your
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