31 May Question Farmer Fitzgerald was heard saying “My farm is profitable, but I c
Question
Farmer Fitzgerald was heard saying “My farm is profitable, but I can’t afford to stay in business any longer. I am going to sell the farm and teach at the local TAFE College.’ In what sense is farmer Fitzgerald using the word profitable here? Why do you think his sentiment would be unconvincing if he is referring to economic profits?
Thomas Malthus reasoned that because the 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?
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