AGRICULTURAL ECONOMICS 



PROBLEM ILLUSTRATING THE FOREGOING PRINCIPLES. 

 I. Four farmers, A, B, C and D, are in competition for 

 four grades of land, ist, 2nd, 3rd, 4th. The following fig- 

 ures represent the value of the produce which the farmers 

 of each grade can produce on the land of different grades 

 as a result of the expenditure of six dollars' worth of labor 

 and capital. 



(a) How much differential rent would be paid for the 

 amount of land employed in each case (allowing 5 cents 

 as a margin in each case) ? 



(b) Supposing that the six dollars are expended upon 

 one acre in case of the fourth grade land, and that the third 

 grade land is farmed 5 per cent, more intensively than the 

 fourth grade, and the second grade 10 per cent, and the 

 first grade 15 per cent, more intensively than the fourth 

 grade, how much would the rent per acre be on each grade 

 of land? 



(c) Supposing that the net rent is go per cent, of the 

 gross rent, and that the current rate of interest on safe loans 

 is five per cent., what would be a fair capitalization of the 

 income of each piece of the land? 



(d) Supposing that all farmers live equally well, and 

 leaving out of account the influence of variations in quan- 

 titative efficiency, how long would it take each man to pay 

 for the land which he cultivates by saving from his profits 

 if the land can be purchased at its capital value ? 



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