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242 PRINCIPLES OF RURAL ECONOMICS 



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r certain advantages and economies in large-scale production, 

 even in agriculture, but there are also very marked difficulties 

 and disadvantages, and the general experience tends to show 

 that the disadvantages are greater than the advantages. 



Advantages of large-scale production. The advantages of 

 large-scale production in agriculture are the same as in any 

 other industry. They are, first, economies of skill ; second, 

 economies of equipment ; and third, economies in buying and 

 selling. Economy of skill is effected when one who possesses 

 special skill for a particular kind of work is enabled to spend 

 all his time at that work. If there is only enough of this spe- 

 cial work to occupy a part of his time, he must either remain 

 idle the rest of his time or spend it doing an inferior kind 

 of work which could be done just as well by a less skillful and 

 cheaper man. On a large farm he is more likely to find enough 

 skilled work to occupy all his time than on a small farm. For 

 example, the farmer himself may be a skilled manager. On 

 a large farm a number of men could work under his direction, 

 and thus the full advantage of his skill would be secured. On 

 a small farm fewer men would have the benefit of his direction. 

 On a very small farm he might have to do all or a part of the 

 muscular labor himself, labor which a cheaper man could do 

 just as well. However, beyond the full utilization of the skill 

 of the manager, there are comparatively few opportunities for 

 economy of skill in large-scale farming. This particular kind of 

 skill, however, is undoubtedly economized by large-scale farming. 

 As Professor Alfred Marshall points out : 1 



The head of a large business can reserve all his strength for the broad- 

 est and most fundamental problems of his trade. He must indeed assure 

 himself that his managers, clerks, and foremen are the right men for their 

 work, and are doing their work well ; but beyond this he need not trouble 

 himself much about details. He can keep his mind fresh and clear for 

 thinking out the most difficult and vital problems of his business; for 



1 Principles of Economics (fifth edition), Vol. I, p. 285. 



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