標題: [Econ] Law of diminshing marginal productivity [打印本頁] 作者: Diver 時間: 23/5/2011 11:10 PM 標題: [Econ] Law of diminshing marginal productivity [Econ] Law of diminshing marginal productivity
AL 1995 (B) Q5. What will the price of land be if the law of diminshing marginal productivity does not hold? Explain.
個 Marking 話 One impression is that land price will rise, because a tiny piece of land can then produce all the food to feed the world. This impression is false, however. There are actually a lot more lands than just one tiny price, and all land owners will compete. With one tiny piece capable of producing all lands combined could (of the law does not hold), the price of land would be driven down to nearly zero under competition.
LDMR not hold 暗示了 MP remain constant / keep raising. 就是暗示愈多 variable input 愈好。 假設 variable input = labour。 這樣 Land 就唔會再有 Scarcity。 Land 無 scarcity -> no competition -> no market. 點解 marking 話 "the price of land would be driven down to nearly zero under competition" ?