Saturday 6 August 2016

Capital III, Chapter 43 - Part 2

The price of production would rise if demand rose to such an extent that market prices rose so that a poorer quality soil than A was brought into cultivation.

Table 16 (VIIa), 17 (VIIb), and 18 (Xa) represents this situation, with this poorer soil designated a).

Table 16

TABLE VIIa








Rent

Type
of
Soil
Ha.
Invested
Capital
£
Profit
£
Price
of
Prod. £'s
Output
Kilos
Selling
Price
£
Proceeds
£
In
Grain
Kilos
In
Money
£
Increase
a
1
5.00
1.00
6.00
1.50
4.00
6.00
0
0
0
A
1
2.50 + 2.50
1.00
6.00
0.50 + 1.25 = 1.75
4.00
7.00
0.25
1.00
1
B
1
2.50 + 2.50
1.00
6.00
1.00 + 2.50 = 3.50
4.00
14.00
2.00
8.00
1 + 7
C
1
2.50 + 2.50
1.00
6.00
1.50 + 3.75 = 5.25
4.00
21.00
3.75
15.00
1 + (2 × 7)
D
1
2.50 + 2.50
1.00
6.00
2.00 + 5.00 = 7.00
4.00
28.00
5.50
22.00
1 + (3 × 7)


25.00
4.00
30.00
19.00

76.00
11.50
46.00


Table 17

TABLE VIIIa








Rent

Type
of
Soil
Ha.
Invested
Capital
£
Profit
£
Price
of
Prod.
Output
Kilos
Selling
Price
£
Proceeds
£
In
Grain
Kilos
In
Money
£
Increase
a
1
5.00
1.00
6.00
1.25
4.80
6.00
0
0
0
A
1
2.50 + 2.50
1.00
6.00
0.50 + 1.00 = 1.50
4.80
7.20
0.25
1.20
1.20
B
1
2.50 + 2.50
1.00
6.00
1.00 + 2.00 = 3.00
4.80
14.40
1.75
8.40
1.20 + 7.20
C
1
2.50 + 2.50
1.00
6.00
1.50 + 3.00 = 4.50
4.80
21.60
3.25
15.60
1.20 + (2 × 7.20)
D
1
2.50 + 2.50
1.00
6.00
2.00 + 4.00 = 6.00
4.80
28.80
4.75
22.80
1.20 + (3 × 7.20)

5
25.00
5.00
30.00
16.25

78.00
10.00
48.00


Table 18

TABLE Xa








Rent

Type
of
Soil
Ha.
Invested
Capital
£
Profit
£
Price
of
Prod.
Output
Kilos
Selling
Price
£
Proceeds
£
In
Grain
Kilos
In
Money
£
Increase
a
1.00
5.00
1.00
6.00
1.125
5.33
6.00
0
0
0
A
1.00
2.50 + 2.50
1.00
6.00
1.00 + 0.25 = 1.25
5.33
6.66
0.666
0.66

B
1.00
2.50 + 2.50
1.00
6.00
2.00 + 0.50 = 2.50
5.33
13.33
1.475
7.33
0.66 + 6.66
C
1.00
2.50 + 2.50
1.00
6.00
3.00 + 0.75 = 3.75
5.33
20.00
2.625
14.00
0.66 + (2.00 × 6.66)
D
1.00
2.50 + 2.50
1.00
6.00
4.00 + 1.00 = 5.00
5.33
26.66
3.875
20.66
0.66 + (3.00 × 6.66)

5.00
25.00
5.00
30.00
13.625

72.66
8.000
42.66

As the relative fertility of all existing soils, including A, is now changed, a new Differential Rent I arises. And because Differential Rent I has changed, and additional capital is invested, Differential Rent II also changes.

The fertility of this new soil, type a, is assumed to be different in each of the three examples above.

The relative fertility of soils A – D, in each example is 1:2:3:4, i.e. ½, 1, 1½, 2. The rent is related in the same manner.

[“In brief, if the rent from A = n, and the rent from the soil of next higher fertility = n + m, then the sequence is as follows: n : (n + m) : (n + 2m) : (n + 3m), etc.”] (p 714)

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