DISTRIBUTION OF WEALTH 



of land to choose from. These three grades of 

 land are represented by letters A, B, and C (Fig. 

 5), the latter being marginal land. The curves 



Y z 



FIG 5 



H A I, HB I, and H C I represent the increasing 

 and diminishing returns to succeeding units of 

 labor and capital-goods upon the different grades 

 of land. We have made this somewhat more 

 simple than the actual conditions by taking a case 

 where the lines of increasing and diminishing re- 

 turns have a definite relation to each other. The 

 largest gross return per unit of labor and capital- 

 goods will be gained from each of these. three 

 pieces of land when X units (measured by line 

 H X, in Fig. 5 ) have been expended. With this 

 expenditure upon each of the three grades of land, 

 the value of the product which a given farmer can 

 produce on A grade land will be represented by 

 the area H M N X; that of B grade land, by the 

 area H L O X; and that of C grade land, by the 

 area H K P X. But, the same amount of labor 

 and capital-goods will not be applied to the three 



163 



