CONTENTS

CHAPTER V

SOME SPECIAL PROBLEMS OF VALUATION

AUTHORITIES
MARSHALL “Principles of Economics,” Book V. Chapters VI. XIIL
HADLEY . Railroad Transportation.”

PAGES
Joint products. Relation of quantities supplied links their relative values
together, since demand must be proportioned to supply. Variation of
relative amounts produced permits determination of marginal cost of
each. Joint demand. When one of two combined commodities is
unaffected in value by the demand for the combination, and when its
value is so affected. The principle of substitution. Equalisation of
cost of attaining the same end by different methods. Composite
demand. Monopoly gives the power of so controlling price as to
maximise profit. Arbitrary control restrained by recourse to substitution.
 Concentration of production may effect economies. The
tyranny of monopoly feared more than the waste of competition.
Further discussion of joint products in relation to railway rates. Cost
of service not determinable. Analysis of cost. What the traffic will
bear. Deficiency of revenue from operation checks extensions and
improvements. Excessive profits stimulate competition. Problems of
momentary market equilibrium practically realise conditions of fixed
supply. Supply at a fixed price. Quantity supplied needs adjustment
to demand evoked. The fixity of price may be only nominal or the
quality of the supply be varied . 65-78

CHAPTER VI

HE PROBLEM OF INTEREST: THE SHARE OF CAPITAL
IN DISTRIBUTION

AUTHORITIES
CLARK . . . ¢ The Theory of Distribution.”
MARSHALL. . ‘Principles of Economics,” Book VI. Chapter VI.
BOHM-BAWERK  ‘‘ Capital and Interest.”

Capital and capital-goods distinguished. Value of capital goods derived
from the value of their products. The principle of decreasing marginal
utility applies, not only to special capital goods, but to capital in
general. Value of capital depending on anticipated demand for
products, the supply may fail to correspond with the demand. Cost
of production as affecting the supply. The supply regarded as the
accumulated store or as the rate of addition to the store. New
supplies flow to the most promising openings, Demand for capital