. Agricultural economics. Agriculture -- Economic aspects United States; Land tenure. THE PROPORTIONS OF THE FACTORS OF PRODUCTION 145 This means that the point of maximum net returns is reached, in the case of a share tenant, with the appHcation of the same number of units which yield the largest average gross product. Other things remaining the same, how will a change in wages and interest influence the intensity of culture? Suppose that wages and interest fall twenty per cent; will it then pay the farmer to invest more units per acre? If the rent should re- main the same as before the reduc
. Agricultural economics. Agriculture -- Economic aspects United States; Land tenure. THE PROPORTIONS OF THE FACTORS OF PRODUCTION 145 This means that the point of maximum net returns is reached, in the case of a share tenant, with the appHcation of the same number of units which yield the largest average gross product. Other things remaining the same, how will a change in wages and interest influence the intensity of culture? Suppose that wages and interest fall twenty per cent; will it then pay the farmer to invest more units per acre? If the rent should re- main the same as before the reduction in wages and interest, and if the foregoing reasoning with regard to the proper in- tensity of culture be true, the degree of intensity in terms of. Figure S quantities of labor and capital-goods which would yield the largest net return would not change; but the expenditure per acre in value would be decreased and the profits of the farmer would be increased in the same proportion. This higher profit might increase the demand for land, however, and this would likely result in a rise in rents, after which it would pay to in- crease the quantity of labor and capital-goods employed, excepting in the case of the share tenant. The influence of a rise or fall in the price for which the prod- uct can be sold will influence the degree of intensity only as it may affect the amount of rent which must be paid for the use of land. As prices rise the rent tends to rise and the degree of intensity should be increased, while the reverse is true in the case of falling prices. This is true because land of a given degree of productivity is limited, and as labor and capital-goods increase in quantity, land of a less productive grade must be resorted to, and without improvements this is possible only when wages and interest fall or prices rise. But there is a close relation between. Please note that these images are extracted from scanned page images that may have been digitally enhanced for
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Keywords: ., bookcentury1900, bookdecade1910, booksubjectlandtenure, bookyear1
