Okay. So let me return to the initial example, which you dismissed. When you have a 100 people with a 100 km, and then you increase it to 200 people with 100 km, did people get land poor or land richer?
Did the initial 100 people benefit as rent payers when you add an additional 100 rent payers competing for the same land?
Were the first hundred made worse of or better off?
Second, do you recognize that
diminishing rates of return exist in the real world?
"The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant ("
ceteris paribus"), will at some point yield lower incremental per-unit returns.
[1] The law of diminishing returns does not imply that adding more of a factor will decrease the
total production, a condition known as
negative returns, though in fact this is common.
A common example is adding more people to a job, such as the assembly of a car on a
factory floor. At some point, adding more workers causes problems such as workers getting in each other's way or frequently finding themselves waiting for access to a part. In all of these processes, producing one more unit of output per unit of time will eventually require increasingly more usage of the input, due to the input being used less effectively.
[2] Another well-studied example is
throwing more headcount at software development, yielding
Brooks's law.
The law of diminishing returns is a fundamental principle of economics.
[1] It plays a central role in
production theory.
[3]"