ABSTRACT
In the two previous chapters we have discussed the economic system as if it were composed of a number of separate and independent processes within each of which there is the possibility of some marginal adjustments in the pattern of inputs and outputs. There are engineering works and dairy farms; in the engineering works some adjustments can be made in the proportions in which different engineering products are produced and in the proportions in which different factors are employed; in the dairy farms some adjustments can be made between the proportions in which butter and cheese are produced or in which land and labour are employed; but an engineering works remains an engineering works and a dairy farm a dairy farm.
