WAGES, PROFITS AND INTEREST 18» 
greater. This movement, as the one pre 
viously dealt with, would continue until the 
earnings of employers were just sufficient to 
maintain the supply under the new conditions. 
In other words, the payment of employers 
for the work that they do is governed on the 
one side by the surpluses over expenses of 
production when businesses are of different 
sizes, and on the other side by the incomes 
at which different numbers of employers 
will be forthcoming. So we may say that the 
earnings of employers are settled by demand 
and supply. The surpluses just mentioned 
express the demand, and supply means the 
supplies of organising power forthcoming 
when different incomes are to be expected. 
The importance of marginal effects in this 
theory is apparent. 
It will be understood that the earnings of 
employers for the work that they do can only 
be regarded as approximating to a defined 
limit in an exaggerated long run, a long run 
which is much longer than the time required 
to bring interest or wages to their normal 
levels. The reason is that an industrial 
business is an economic organism of very 
slow growth, and that once a business has 
been established, unless it is worked at a 
positive loss apart from payments to cover the