THE GRADES OF THE FACTORS OF PRODUCTION 121 



received payments for their efforts varying from $1961 to 

 minus $338. It will be noted that, so far as the figures in this 

 table go, there is no definite relation between a man's capacity 

 as measured by his outlay and his efficiency as measured by 

 product per unit of outlay. A man with high efficiency may 

 have low capacity and the man with high capacity may have 

 any degree of efficiency. These facts are brought forward to 

 illustrate the well-known fact of variations in the ability of 

 men and to note that at least two measuring sticks are needed 

 if we hope accurately to measure man's ability. 



Table VI illustrates some of the differences which exist in one 

 class of instruments of production, namely, cows. This table 

 shows the best ten and the worst ten of 398 cows entered in 

 the Wisconsin Dairy Cow Competition during the two years 

 1909-1911, each cow being in the contest one year. It will be 

 noted that the difference in value of product per dollar's worth 

 of feed consumed by the best ten cows varied from $2.71 to 

 $2.19 and that the range for the least efficient ten cows was 

 from $1.25 to 92 cents. The total range was from $2.71 to 

 92 cents, the average result of the best ten was $2.38, and that 

 of the least efficient ten was $1.11. In Table VI a common or 

 standard price level was used in calculating the cost of the feed 

 and the value of the product. It remains, however, to be ex- 

 plained that these cows were not all under the same manage- 

 ment. The differences in product per unit of feed are due, 

 therefore, to differences in the efficiency of men as well as to 

 differences in the efficiency of cows. The cows in one herd in 

 the same barn, receiving the same feed, care, and management, 

 must be compared if cow efficiencies are to be isolated. 



The fact of differences in efficiency and capacity granted, are 

 they significant from the standpoint of production? From the 

 point of view of the effective management of farms the signifi- 

 cance of this analysis of the grades of the factors of production 

 lies in its relation to the problem of right choice of the instru- 

 ments of production which are to be combined under a given 

 management. If difference in market valuations corresponded 

 to each man's estimate of the variations in the usefulness 



