In fact, should the human race shrink significantly [due to antinatalism perhaps], without societal collapse, the average utility of a human life should increase.
Why shouldn't having a higher population lead to greater specialization of labor, economies of scale, greater gains from trade, and thus greater average utility?
Because of the law of diminishing returns (marginal utility). If you have a billion humans one more (less) results in a bigger increase (decrease) in utility than if you have a trillion.
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Part 2