ABSTRACT
The marginal concept, as first employed by an extension of the Ricardian application in grading the productive qualities of the several factors of production, has a definite use. Just as in the utilisation of the available supply of land for wheat or any other agricultural purpose, there is some land which, at the price of the product ruling in the market, it is just worth while to employ (marginal land), so with the existing supply of concrete plant or other capital available in a given industry, where it varies in efficiency, some of it will be only just worth while employing at a given price level for the product. If that price level should fall, the marginal capital (like the marginal land) will pass out of use. Similarly with labour, where the available supply exceeds the normal demand, there will at any time be a marginal grade of workers just worth employing.
