Evaluating Agricultural Expansion Strategies
Imagine two identical, isolated farming communities, each starting with 100 farmers on 100 acres of prime-quality land. Over time, the population in both communities doubles, resulting in 100 new farmers in each. The communities adopt different strategies to employ the new labor:
- Community X employs all 200 farmers on the original 100 acres of prime land.
- Community Y keeps the original 100 farmers on the prime land and sends the 100 new farmers to cultivate 100 acres of newly-cleared, less-fertile hillside land.
Based on the principles that govern labor productivity in agriculture, which community is likely to experience a greater decline in its overall average product of labor (the community's total output divided by its 200 farmers)? Justify your choice by explaining the distinct reasons for declining productivity at play in each community's strategy.
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Social Science
Empirical Science
Science
Economy
CORE Econ
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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