. Agricultural economics. Agriculture -- Economic aspects United States; Land tenure. THE SIZE OF FARMS 163 and less important to him, until finally the point is reached where the increase in the net profit is not sufficient to induce the farmer to increase his activity. This can be illustrated by means of a diagram. In Fig. 9 the succeeding composite units of the agents are measured C' D' e' F' G' !f l' K' L' M'. E F G H I K Figure 9 M N on the base line A X, and the net profit which the farmer re- ceives for managing these units is represented by the area between this line and the line BY, s
. Agricultural economics. Agriculture -- Economic aspects United States; Land tenure. THE SIZE OF FARMS 163 and less important to him, until finally the point is reached where the increase in the net profit is not sufficient to induce the farmer to increase his activity. This can be illustrated by means of a diagram. In Fig. 9 the succeeding composite units of the agents are measured C' D' e' F' G' !f l' K' L' M'. E F G H I K Figure 9 M N on the base line A X, and the net profit which the farmer re- ceives for managing these units is represented by the area between this line and the line BY, so that the area ABC'Cy for example, represents the net return from one of the composite units. If the idea of a composite unit seems too abstract to the reader, he may think of one of these units of the agents of production as being one laborer and the amount of land and equipment associated with him. That share of the net profit per unit which is represented by the area lying below the curved line PP' may be thought of as the amount which is required to yield to the manager a pleasure in consimiption of goods equal to the pain of performing the work of management. Assuming that he devotes exactly the same care to each unit, as he con- tinues to increase the number of units the perpendicular dis- tance between lines AX and BY will remain constant; but a larger and larger proportion of the net profits of the succeed- ing units will be required to counterbalance the pain or disutihty accompanying the added exertion required for the manage- ment of such units, hence the curve PP' will gradually rise until at some point it will cross the Hne BY, beyond which point the pain of exertion exceeds the net profit to be secured. The curve PP', representing the increase in the pain cost, may start high up the line AB and rise rapidly with a lazy man, or it may start far below A, rise slowly and not reach. Please note that these images are extracted from scanned page images that may have be
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Keywords: ., bookcentury1900, bookdecade1910, booksubjectlandtenure, bookyear1
