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Wednesday, 2 March 2016

What are the assumptions of the theory of optimum population?



The optimum population theory is based on certain assumptions which are as follows:
·         The theory assums that there is a direct relation between the average production of labour and per capita income. The proportion of working population to the total population remains unchanged in a country. This means that any change in the average productivity will introduces, the same change in per capita national income.
·         The theory assumes that after a certain point, the law of diminishing returans operates in the field of production. The natural resources, amount of capital and technical know-how remains unchanged at a particular time in a country whenever population increases.
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