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
[Sidenote: Differential advantage of agents in the quality of their
products]
1. _Rent varies with the quality of the products yielded by agents,
other things being equal._ Let us take first a simple case where the
agent is the sole condition of the product. If there is but one tree
bearing a certain luscious fruit, or but one spring yielding a mineral
water, the rent of the tree or spring being equal to the value of the
products must vary as the quality of the products varies. If two or more
trees are standing side by side, they will be compared with regard to
the difference in the quality of their fruits. If two fields differ in
quality, greater importance will be attached to the field capable of
producing the better grade or variety of fruit or product. A peculiar
mineral quality in the soil may impart to wine a choice flavor that can
at once be recognized by experts; while other fields, distant but a few
rods, cannot by any effort be made to produce wine of the same rare
quality. There is said to be a marked difference in the success of
vineyards lying only a short distance apart on the shores of the larger
lakes of New York. Nearness to the water moderates the temperature,
often prevents frosts, and hence insures the ripening and quality of the
fruit. In the Santa Clara valley, as in other parts of California, there
is a frostless belt, sharply marked off from the lands where it is
unsafe to attempt to cultivate the delicate orange-tree and other
semi-tropical plants. In manifold ways differences in geological
formation affect the use of land and the success of many industries. On
one side of a little creek is limestone land, on the other shale, the
limestone producing a crop larger and of better quality. When the
peculiar nature of the one field is found to be the cause of the
exceptional quality of its fruits, the difference in value is attributed
to it.
[Sidenote: The lower grade limits the value of the higher grade]
Public-domain text, read in full here on John Shaqi.
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