170 
POLITICAL ECONOMY 
the works and the material used, or, if it 
is a case of farming, the quantity of land 
embraced by the farm. Imagine that an 
employer has a business which can be repre 
sented by 100 L. -f 200 C. -f 50 M. Imagine 
moreover that the product is worth £500 a 
week, and that the following combinations 
produce the amounts stated :— 
Agenta in production. Product per Increase 
week. of product. 
100 L.-f 200 C.-f 50 M. £500 
101 L.-f 200 C.-f 50 M. £502 3s. £2 3s. 
102 L. + 200 C.-f 50 M. £504 4s. £2 Is. 
103 L.-f 200 C.-f 50 M. £506 4s. £2 0s. 
104 L.-f 200 C.-f 50 M. £508 2s. £l 18s. 
Then the employer would try to increase his 
labour to 102 men at least, and would not 
increase it to more than 103, if wages were £2 
a week, because up to 102 the gain in product 
exceeds the wage of the extra man, but beyond 
103 it is less than the wage of the extra 
man ; and obviously the employer would act 
similarly with reference to capital and other 
agents in production, considering what would 
be the effects on his net takings of increasing 
or reducing each of them. Finally he would 
reach an arrangement of such a kind that the 
marginal worth of each class of factors in his