ABSTRACT
The three necessary factors then are land, labour, and capital. Hence it is at once realised that there are three things without which no production of wealth can take place. Without all three, no results can be obtained. These three factors differ very much from each other. Thus land and labour are said to be agents in production, because they do something, each contributing something which they alone can do. Capital is said to be an instrument in production because it needs to be set to work by the hand of an active agent. In addition to the laws people want to discover the best way to divide up the wealth which has been produced among those who have worked together in its production. He informed one of the German managers that he could reduce the cost of steel production vary materially by introducing certain machinery.
