7. Growth of Population


Assume that a good piece of agricultural land (as in our earlier charts) yields four. People settle in one section of it, and a town grows up there. The land within the town is no more fertile than any other - but productiveness of a new kind has arisen there. Because of the economies of cooperation and specialization of labor, it now yields forty instead of four. If the four land were free, what would be the rent in town?

How do labor-saving inventions affect rent and wages?