ABSTRACT
The value of the marginal social net product of resources in any use is the money measure of the satisfaction which the marginal increment of resources in that use is yielding. This chapter describes the assumption that there is only one arrangement of resources which makes the values of marginal social net products everywhere equal—or as nearly equal as, in view of costs of movement. This assumption would be justified if the value of the marginal social net product of resources employed in each several use was always smaller, the greater the volume of resources employed there. Allowance being made for costs of movement, it is true that the dividend cannot reach the maximum attainable amount unless the values of the marginal social net products of resources in all uses are equal. For, if they are not equal, the dividend can always be increased by transference of resources from the margin of some uses to the margin of others.
