Lecture 1 After Mid. The optimum populationtheory The optimum population theory There are four important concepts related to: The optimum size of population.

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Presentation transcript:

Lecture 1 After Mid

The optimum populationtheory The optimum population theory There are four important concepts related to: The optimum size of population occur in the case of:

1- The size of population which is achieve the maximization of consumption to income At the maximum level of the average productAt the maximum level of the average product (( = the marginal product )) (( = the marginal product )) ( Gives the maximum income per head)

2-The size of population which is produce the maximum economic welfare The necessary minimum level of welfare (given)The necessary minimum level of welfare (given) = the marginal product in its increasing stage = 0000= the marginal product in its increasing stage = 0000

3- Keeping of the necessary minimum level of survival where the necessary minimum level of survival (given)where the necessary minimum level of survival (given) = the average product (in its decreasing stage, where the marginal product is negative). = the average product (in its decreasing stage, where the marginal product is negative).

4-The size of population which is achieve the conformance between population and resources The total product at its maximum value andThe total product at its maximum value and the marginal product = 0the marginal product = 0

Average Product (AP)= TP/L TP/L TP: Total product, L: the number of workers The amount produced by L workers divided by the number of workers ‑‑ "output per worker". Marginal Product (MP)= ΔTP/ΔL The increase in output with an increase in labor

EX: Given the following data about an virtual country: Pop: Population in million TP: Total product in milliard T POP TP

Required : 1- Which is maximize consumption to income. (gives the maximum income per head) 1- Which is maximize consumption to income. (gives the maximum income per head) Find the optimum size of population:

2- Which is produce the maximum economic welfare, where the necessary minimum level of welfare = $16000

3- Keeping of the necessary minimum level of survival, where the necessary minimum level of survival = $ Which is achieve the conformance between population and resources

Average Product (AP)= TP/L TP/L Total Product/Labor Average Product (AP)= TP/L TP/L Total Product/Labor Marginal Product (MP)= ΔTP/ΔL Marginal Product (MP)= ΔTP/ΔL

MPAPTPPOPTime