RENTS AND PROFITS 



201 



of the quality in use, competitive forces tend to increase rent 

 at the expense of the return to the other factors. 



Figure 10 is intended to illustrate the distribution of the 

 gross returns of the agricultural industry, among the factors of 

 production. This illustration is based upon Table XIII and it 

 is assumed that the factors will be brought together in the most 

 productive manner, that is, with the most efficient farmers 

 operating the most efficient forms of equipments upon the most 

 efficient land, and that these factors are associated in the proper 



FIGURE 10 



proportion. Under these conditions the composite units which 

 are made up of the most productive grades of the factors will 

 yield a relatively larger product, in proportion to their pro- 

 ductivity, even, than the units made up of the less productive 

 grades of the factors, and hence, in the higher grades each factor 

 will receive the necessary minimum and a further differential 

 due to superior efficiency and to the cooperation of the more 

 productive grades of the factors. 



When the subject of distribution is viewed from the stand- 

 point of industrial progress, through a long period of years, 



