in the theory of value and prices. 63 



An analogous mechanism and discussion applies to the separation 

 of production into retailing, wholesaling, transportation and even the 

 various technical processes distinctive of the production of each 

 commodity. In making worsted for instance there are some 16 

 processes having this sort of dependence. 



The reactions and equilibrium in the real world are still more 

 complicated than those here presented. Not only is there equilibrium 

 in one market as New York city, but a mutual dependence of vari- 

 ous markets. The rate of transportation determines in part the 

 amount of dependence and the amount of communication deter- 

 mines in part the rate of transportation. As Cournot* says, " * * 

 le systeme economique est un ensemble dont toutes les parties se 

 tiennent et reagissent les unes sur les autres." 



End of Part I. 

 * Principes mathematiques, Ch. XI, p. 146. 



