The distribution of wealth . and real cost of pro-duction is only one of many forces which give powerover supply. In ordinary business dealings the term cost ofproduction is used in the sense of expenses,and it would be convenient to follow this clearness demands that we have distinct termsfor distinct conceptions, and the terms cost ofproduction and expenses of production will behereafter employed as above indicated. 3. An apparent inconsistency between diminishingproduct and diminishing value exists in the factthat in the case of product alone, a diminishingreturn on the latter inc
The distribution of wealth . and real cost of pro-duction is only one of many forces which give powerover supply. In ordinary business dealings the term cost ofproduction is used in the sense of expenses,and it would be convenient to follow this clearness demands that we have distinct termsfor distinct conceptions, and the terms cost ofproduction and expenses of production will behereafter employed as above indicated. 3. An apparent inconsistency between diminishingproduct and diminishing value exists in the factthat in the case of product alone, a diminishingreturn on the latter increments invested on a givenarea of ground does not reduce the quantity of thereturn to the earlier increments. But in the case ofvalue, when the value of the marginal units of pro- Ill DIMINISHING RETURNS AND RENT 147 duction has been brought down by increasing thesupply, the value of each and all the other units ofproduct has been brought down to the same V. is drawn in such a way as to illustrate Diagram the current demonstrations of diminishing this diagram ad represents one dose of capital andlabour, and ab the total number of doses; be repre-sents the quantity of product produced by the mar-ginal dose. The returns to the earlier doses follow Diagram VI.
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Keywords: ., bookcentury1800, bookdecade1890, booksubjectwealth, bookyear1893
