The First Economic Revolution - Suppose the "average cost" function for Hunting and Gathering is given by AC=10. That is to say hunting and gathering has constant average time cost per unit of food produced. Further suppose that the function for settled agriculture is given by AC=6−0.0005Q; where, again AC measures time cost, and Q is the units of food produced in, say, calories per capita per day. If these had been the functions in c. 10,000BC, then it would not have been optimal for homo sapien to transition into settled agriculture when the daily per capita demands for food equaled 2,000 units of Q, ceteris paribus.
a. True
b. False