212 
POLITICAL ECONOMY 
Doses of labour 
and capital of 
£5 each. 
1 
2 
3 
4 
5 
6 
Value of total 
returns at 
constant price. 
£7 . . 
£16 .. 
£24 .. 
£30 .. 
£35 .. 
£39 .. 
Value of 
marginal returns. 
.. £7 
.. £9 
.. £8 
.. £6 
.. £5 
.. £4 
Five doses will be applied, as the marginal 
return for five doses of £5 each is £5 : the 
application of a sixth dose would cause loss. 
The total earnings of the farmer and his 
agents in production will be five times £5, or 
£25. The value of the aggregate return is £35. 
Hence the rent is £35 less £25, that is £10. 
Two corollaries may be deduced from this 
demonstration. The one is that, other things 
being equal, the most favourably situated 
land will be worked the most intensively. 
The other is that more doses of labour and 
capital will be applied in making use of the 
more favourably situated building sites than in 
making use of the less favourably situated 
ones. In proof it is sufficient to point to the 
high and costly buildings in the centres of 
large towns. 
My next purpose must be to indicate that the