ABSTRACT
In considering the question of profits the expenses of production have been taken for granted. But it must be remembered that, normally, the entrepreneur is not only a seller, but also a buyer. He has, for instance, to buy raw material, and in most forms of production he will also have to make heavy outlays for fuel, lighting, repairs, and so on. He will further have to buy or rent land and build ings and to hire labour. The factors which determine the price which he will have to pay for land and labour will be examined in some detail in later chapters.
