## 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 TypeofSoil Ha. InvestedCapital£ Profit£ PriceofProd. £'s OutputKilos SellingPrice£ Proceeds£ InGrainKilos InMoney£ 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 TypeofSoil Ha. InvestedCapital£ Profit£ PriceofProd. OutputKilos SellingPrice£ Proceeds£ InGrainKilos InMoney£ 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 TypeofSoil Ha. InvestedCapital£ Profit£ PriceofProd. OutputKilos SellingPrice£ Proceeds£ InGrainKilos InMoney£ 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)