ABSTRACT
This chapter discusses the way in which the size of the national dividend will be affected by a reduction of the obstacles to the movement of productive resources that are set up by ignorance and costs of movement. It is legitimate for this purpose to ignore differences between marginal social net products and marginal private net products; for, though particular obstacles to movement may prevent equality between the values of marginal private net products in such wise as to promote equality between the values of marginal social net products, there is no reason to suppose that obstacles to movement in general act in this way. The fact that obstacles to free movement comprise both costs of movement and imperfections of knowledge complicates the situation; for one have to contemplate reductions of costs while knowledge is still imperfect and improvement of knowledge while costs remain.
