ABSTRACT
Last time I commenced to discuss the supply of material factors of production under stationary conditions, and as a preliminary investigation I examined the traditional division of factors of this sort into land and capital. Broadly speaking the conclusions I tried to suggest were twofold:
That “land” is an unsuitable label for the class whose supply is rigid and that it is better to classify on the analytic basis of flexibility of supply than on the “substantial” basis of whether the factor is or is not a produced means of production. All material factors are composed of “land” in the sense of natural stuff; the important question is how rapidly can their number be increased or diminished.
Second, that it is better to restrict the significance of the term capital to its business meaning, sums of money invested or the present value of the rights conferred by ownership.
Now today I want to proceed to the discussion of the conditions of equilibrium.