ORGANIZATION OF THE FARM 



Not forgetting that "the largest total net profit" 

 is the ideal which we have ever before us, when 

 considering this subject from the standpoint of 

 the farmer, let us assume that the farmer has at 

 his command, land, laborers, and capital-goods 

 already brought together in the most desirable 

 proportions. Then, leaving until later the dis- 

 cussion of the rules which should be followed in 

 determining these proportions, we shall first at- 

 tempt to ascertain the number of composite units, 

 made up in the proper proportions of the other 

 factors, which should be brought under a given 

 amount of managerial activity. 



Assuming that a farmer wishes to devote a 

 given amount of effort to the management of 

 agricultural operations, the question arises 

 whether he should give this effort to a large num- 

 ber of these composite units and give but little 

 attention to each unit, or devote this same amount 

 of managerial activity to a small number, and 

 give very close attention to each unit. If the 

 number of these composite units under one man- 

 agement be increased, without any increase in the 

 amount of effort put forth on the part of the 

 manager, so that less and less attention is given 

 to each unit, a gradual decrease in the return per 

 unit will take place as the number of units is in- 

 creased, until finally a point will be reached where 

 all of the net profit secured by adding another unit 

 will be absorbed by the subtractions from the 



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