The increasing marginal product from a property leads to the decreasing marginal product of that property and, eventually, to a move in the opposite direction in order to preserve the property as such. So in this balance is given the constant productivity for that entrepreneurship. It takes time for the repeated reproduction of an increasing marginal product to manage to extract the optimal product. And yet again, with time, extraction tends to diminish the product below its optimum through a decreasing marginal product. Because it takes time to determine where the optimum of productive consumption lies, the constant productivity is not achieved strait away. Nevertheless, it is not simply a question of knowledge where the optimum is but a process of gradual acquisition of the necessary resources – through the roundaboutness of rent and capital – for the attainment of wealth.
Historical Backdrop
• JAMES ANDERSON The Origins of Rent: profit.
• DAVID RICARDO On the Principle of Political Economy and Taxation: rent.
• WILLIAM JEVONS The Theory of Political Economy: final rate of yield.
• ALFRED MARSHALL Principles of Economics: law of constant returns.
