Elements of political economy . worked, and inthe best mine more costly methods of extraction may beadopted. In sea fisheries there is no rent, because there is noappropriation. When appropriation is possible, as in thecase of salmon, a rent arises. In this case, since the stockis renewed annually by natural means, the rent closelyresembles that of agricultural land; and again we haveextensive and intensive diminishing return. In building land, we have the best example of thepermanence of natural qualities, namely, extension andsituation. In the case of cities with widely extendedsuburbs, ther
Elements of political economy . worked, and inthe best mine more costly methods of extraction may beadopted. In sea fisheries there is no rent, because there is noappropriation. When appropriation is possible, as in thecase of salmon, a rent arises. In this case, since the stockis renewed annually by natural means, the rent closelyresembles that of agricultural land; and again we haveextensive and intensive diminishing return. In building land, we have the best example of thepermanence of natural qualities, namely, extension andsituation. In the case of cities with widely extendedsuburbs, there is continuity from the central positions that ECONOMIC RENT 207 pay enormous rents, to the land on tlie margin that paysno rent Qqua building) or only the equivalent of agricul-tural rent. The case is exactly similar to that of agricul-tural rental with a difference only in the kind of produce:the kindly fruits of the earth are now amenity for dwell-ing-places and advantages in business. There is often V D - Fig. 1. F G L H K. Let OA, AB, BC() be three equal portions of land or dosesof capital. Let OE, AG, BK be their respective com product. Thenif AB is the marginal portion or dose, Rent = DF; while, if BC isthe marginal portion, Rent = DL + FH. If, as in Fig. 2, we take the portions of land or doses of capital tobe very small, then corresponding returns become lines, the ends of?which form a curve. If the M^^ be taken as the marginal dose, thenRent equals EPL. present also the scarcity element which as before mustbe distinguished from monopoly. If commodities aresold at the same price in shops in different streets, thehigher rent in some is to be ascribed to the economies pos-sible with greater and more continuous custom. If themore fashionable neighbourhoods exact higher prices,they must be considered in part only as payment for the 15 208 ELEMENTS OF POLITICAL ECONOMY thing, and in part as payment for entry to the locality:a kind of tacit or customary entrance fee. T
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