85 



of Landowners it constitutes Economic Bent ; in Manufac- 

 turing and other industries, and in Wage-earning Services it 

 is termed Surplus Profit, or Quasi-Rent. 



In none of these cases does the Economic Rent or Surplus 

 Profit so absorbed add in any degree to Economic or Market 

 Price, for the latter is solely determined by the respective 

 representatives of the groups of the same class working 

 under the greatest disadvantage ; that is, at the no-rent or 

 no-surplus-profit stage. 



I am indebted to Gunton for the following tabular illustra- 

 tions, which help to reveal more clearly how the marginal 

 differences of cost of production between the same class of 

 producers or workers are absorbed by the more fortunately 

 circumstanced, in the shape of Economic Rent or Surplus 

 Profit, and how the circumstances of the least favoured or 

 " most expensive portion of supply " alone determine the 

 market price. 



The Law of Bent. (Gunton.) 



" Under conditions of Economic Freedom the rent o land 

 used frr any purpose tends to equal the difference between 

 its productive utility and that of the poorest land used for 

 the same purpose in that community, or which contribute to 

 the necessary supply of the same market." — Gunton. 









Illustration. 













KENT 



SURPLUS 



PRICE 





BUSHELS 

 PER ACRE. 





PER 



ACRE. 



PER 

 BUSHEL. 



PER 

 BUSHEL. 



COST PER BUSHEL. 





Dollars. 



Cents. 



Dollars. 











6.00 



25 



1. 



Minimum Cost ... 75 c. 





24 



1) 



4.00 



18 



1. 



M 11 



82 c. 





22 



C 



2.00 



10 



00 



1. 

 1. 



It II 



Maximum Cost 



90 c. 





20 

 f 18 



B 



^aoo__ 







100 c. 



A 



The Law of Wages. (Gunton.) 



" The law then may be correctly stated thus : — 



"The rate of wages in any country, class, or industry con- 

 stantly tends towards the cost of living of the (average of) 

 most expensive families who furnish a necessary part of the 

 supply of labour in that country, class, or industry." — 

 Gunton. 



