DISTRIBUTION OF WEALTH 



place between D and K, because, as has been 

 shown, the differential rent of A grade land can 

 neither be less than n nor more than 2n. Thus 

 the area E D D f (Fig. 6) represents the differ- 

 ential rent under the assumption that all farmers 

 have the same degree of qualitative efficiency as 

 the marginal farmers, and the area D X D' repre- 

 sents the further differential which arises from 

 variations in the efficiency of the farmers. These 

 two constitute the differential rent which would 

 be paid under the conditions assumed; namely, 

 with homogeneous capital-goods, equally intensive 

 culture on all land, and perfect competition. 



The remainder of the surplus represented by 

 area X C D' would go to the farmers as personal 

 profits, the amount of personal profit received by 

 a given farmer depending upon his relative degree 

 of qualitative efficiency. 



Another method of illustrating the distribution 

 of the proceeds among the factors of production 

 is as follows: Suppose six grades of farmers, 

 represented by letters A, B, C, D, E, and F are in 

 competition for as many grades of land designated 

 as ist, 2d, 3d, 4th, 5th, and 6th grade land. Let 

 us assume that on any grade of land the A grade 

 farmer can secure a gross return twice as great, 

 with a given outlay, as the F grade farmer can 

 secure, and that the gradations in the qualitative 

 efficiency of the farmers is continuous and regular 

 from the A grade to the F grade farmer. Let it 

 171 



