AGRICULTURAL ECONOMICS 



wants which are to be satisfied by the fruits of 

 this increased labor become less and less impor- 

 tant 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. 



C' D' E' F' G' H' l' K' L' 



M><> O' 



C D 



F G H I K 



FIG. 3 



L M N O 



This can be illustrated by means of a diagram. 

 In Fig. 3 the succeeding composite units of the 

 agents are measured on the base line A X, and the 

 net profit which the farmer receives for manag- 

 ing these units is represented by the area between 

 this line and the line B Y, so that the area 

 A B C' C, 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 one laborer and the amount of 

 land and capital-goods associated with him. 

 That share of the net profit per unit which is rep- 

 resented by the area lying below the curved line 

 P P' may be thought of as the amount which is 

 required to yield to the manager a pleasure in 

 consumption goods equal to the pain of per- 

 forming the work of management. Assuming 



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