60 



Irving Fisher — Mathematical investigations 



CHAPTER VI. 

 THE COMPONENT PROCESSES OF PRODUCTION. 



■ §1. 



Without dwelling on the economic applications of the mechanism 

 just described we hasten on to the description of a more complicated 

 mechanism. 



Production usually consists of a number of successive processes. 

 The last of these is retailing. Let us group all other processes 

 under the head of production. The price for production and con- 

 sumption are no longer equal. 



Hitherto we have had two sets of cisterns, the production set and the 

 consumption set. Separate now, these sets far enough to introduce 

 a third set for exchange or retailing as in fig. 17. 



17. 



The exchange set is a series of double cisterns each related to a 

 particular commodity, and a particular person. Consider the cistern 

 lAg for instance (the sub-letter for exchange or retailing). In the 

 front compartment is the quantity of A which I buys and sells or 

 transfers from producer to consumer. The back compartment con- 

 tains the money pay for doing it. 



These exchange cisterns are connected with each other and with 

 the production set by levers precisely as if they were so many new 

 commodities produced. 



