140 



AGRICULTURAL ECONOMICS 



to operate a given number of acres of land without regard to the 

 degree of intensity of culture, then it would be desirable to 

 secure the largest net profit per acre ; but if he can, to advan- 

 tage, manage only a given number of units of labor and equip- 

 ment, regardless of the area on which it is expended, then he 

 should seek the largest net profit per unit of these factors. 



TABLE VIII 



ILLUSTRATING DIFFERENCES IN Two METHODS OF ASCERTAINING THE 

 PROPER DEGREE OF INTENSITY OF CULTURE 



Table VIII is intended to show the difference in the degree of 

 intensity of culture resulting from the application of the two 

 competing theories of intensity of culture. The assumption 

 here is that two men, A and B, are farming the same grade of 

 land, but that while A is a superior farmer, B is a marginal 

 farmer. Column three illustrates the degree of intensity car- 

 ried to the point where the product of the last increment 

 most nearly approximates the cost. According to this theory 

 there is more intensive application of labor and capital by 

 A than by B. Farmer A could have made more profit by stop- 

 ping at an earlier point and using a proportionate amount of 

 additional land with the additional labor and capital. Column 



