THE LAW OF THE COST OF PRODUCTION IN THE SIMPLE ECONOMY
The business man contrasts profits and costs. As he looks at the use to which wares will be put, he regards them as goods meant to bring in profits. As he considers their source, he thinks of them as products whose manufacture involves cost. The comparison of profits and costs runs through the whole of the accounts of production. The business man's constant endeavor is to obtain the largest profit at the lowest cost. He will never incur greater outlays than he anticipates can be recovered through the resulting utilities. However his practical experience never aids him to solve the problem of the manner
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in which the two magnitudes which he is constantly comparing are, in the last resort, fit objects of comparison.