The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
The decreased utility is most clearly seen in the diminished effect
which other agents produce when used in connection with the thing. When
several are trying to use the same book, and are wasting time trying to
get it, we often say their study hours are less fruitful because of the
poor library facilities. Again, we speak either of the diminished
returns of the field, or of the labor applied to the field. Either the
particular thing is said to show diminished returns or the other
coöperating agents are said to show them.
[Sidenote: Decreasing technical effectiveness of material things]
2. _As the agents used in connection with a fixed amount of any other
agent (for mechanical, chemical, physiological, psychological, and other
purposes) increase, their objective effectiveness after a given point
decreases._ Objective or technical effectiveness means effectiveness
independent of the thought or estimate of men. It is not the
effectiveness to produce a feeling in men, but to produce results on the
material world. In a mechanism, if one part is increased without
increasing the other parts, a point is reached where it does not add to
the result. If in the building of a bridge the weight of the floor is
increased beyond a certain point, the rest of the bridge being left
unchanged, the bridge is weakened instead of strengthened. If the weight
of the iron in the framework is increased beyond a certain point without
strengthening the piers, the structure is weakened. If the pier is
greatly enlarged, the bridge may not be weakened, but there is an utter
waste of material and effort, and perhaps the main purpose of the
bridge is defeated by the damming up of the stream. A bicycle frame,
like a chain, is no stronger than its weakest part. If the strength of
all parts of the wheel and frame is in equal proportion to the strain
they must bear, added weight to any single part weakens the whole
machine. The development of the modern type of bicycle, by many
experiments, is a good example of the adjustment of materials according
to the principle of technical efficiency.
A variation of the same principle is seen in chemical combinations.
Exact proportions of materials must be used to get a certain result.
Increase of one ingredient will not increase the desired product. Either
the added part is rejected, does not enter at all into the compound, or
it unites to form another and different product.
That the same principle holds good of the psychological effects of
things, we have already fully recognized in discussing wants and
marginal utility. A given amount of a good will affect the senses in a
pleasurable way, but an increase in the amount will not cause a
proportional addition to pleasure of sight, sound, or smell. On the
contrary, such an increase may defeat the object entirely. Here we are
at the threshold of the economic problem, for we have touched on
"feeling."
[Sidenote: Economic diminishing returns relate to value]
Public-domain text, read in full here on John Shaqi.
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