Political economy

Bibliographic data

Monograph

Identifikator:: 867647221

URN:: urn:nbn:de:zbw-retromon-93157

Document type:: Monograph

Author:: Chapman, Sydney John http://d-nb.info/gnd/123743141

Title:: Political economy

Place of publication:: London [u.a.]

Publisher:: Williams & Norgate [u.a.]

Year of publication:: 1912

Scope:: 1 Online-Ressource (255 Seiten)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

210 POLITICAL ECONOMY we know, from wliat we have learnt of the law of decreasing returns, that sooner or later the addition made to the returns obtained from a field by adding to the doses of labour and capital devoted to its cultivation will become less and less. This being so, it is apparent that in the disposal of labour and capital the farmer will devote so much to each kind of land that the additions made to the returns of each kind of land, as a result of the appli cation of the last dose of labour and capital, will be the same. In saying this we are merely saying that the law of substitution, indifference or equi-marginal returns, holds in production. The proof is identical with the proof already furnished of the proposition that people will tend so to spend their incomes that the marginal utilities derived from differ ent lines of expenditure will be equal. The additions made to the returns of the fields are known technically as the marginal returns, as the reader knows. Continuing our argument, we observe next that each farmer will go on applying doses of labour and capital to each tract of land each season until the marginal return, in view of the price of the produce, is just sufficient to afford normal remuneration for a dose of labour and capital. Normal pay-

Access restriction

Copyright

fullscreen: Political economy

Monograph

Table of contents

Download

Monograph

This page

Image fragment

Citation links

Citation recommendation