ent　from　those　writers　who　do　not　recognize　the　existence　of　this　discrepancy。　This　includes　the　great　majority　of　those　who　hold；　wittingly　or　unwittingly；　that　the　explanation　of　the　value　of　goods　in　accordance　with　the　law　of　cost　is　firmly　anchored　upon　the　elementary　factor；　〃disutility。〃　That　this　is　not　the　case；　I　have　endeavored　to　show；　and　I　will　now　attempt　to　bridge　the　gap　in　the　explanation　of　value；　which　my　investigation　has　revealed。　On　the　one　hand　it　is　held；　that　in　numerous　cases　the　price　of　the　product；　according　to　the　law　of　cost；　oscillate　about　some　normal　rate　of　wages；　which　rate　does　not　correspond　either　to　the〃　disutility〃　of　labor　or　the　cost　of　maintaining　the　laborer。　On　the　other　hand；　Professor　Marshall；　in　common　with　many　other　English　and　American　economists；　admits　that　the　normal　rate　of　wages　is　adjusted　according　to　the　value　of　the　product　of　the　last　employed　laborer。
  VI。　What　the　Law　of　Cost　Really　Means。　Final　Result。
  The　existing　productive　powers；　inclusive　of　the　most　original　and　important　of　all…labor…seek　employment　in　the　various　opportunities　for　production　that　present　themselves。　Naturally；　of　course；　they　first　engage　in　those　branches　of　production　that　are　most　profitable。　But　as　these　are　not　sufficient　to　give　employment　to　the　whole　productive　power；　some　of　this　power　must　engage　in　successively　less　productive　occupations；　until　finally　A　of　it　is　employed。　This　gradual　extension　to　less　probable　occupations　may　be　seen　in　the　production　at　one　and　the　same　time；　of　more　valuable　goods；　and　of　others；　which　from　the　very　beginning　were　less　valuable；　because　the　demand　for　them　was　less　urgent。　But　the　important　case　of　this　gradual　extension　to　less　profitable　employments　is　found　elsewhere。　In　any　branch　of　production　which　hitherto　has　been　very　profitable；　the　amount　produced　tends　to　increase。　Hence；　according　to　well　known　principles；　we　are　compelled　to　market　the　increased　product　at　a　diminished　price。　　　　　　The　demand　arranges　itself　in　strata　that　vary　with　the　desire　and　purchasing　power　of　the　consumers。　Let　us　assume　that　of　a　certain　kind　of　commodity；　thirty　thousand　pieces　are　produced　by　one　hundred　laborers　with　an　outlay　in　labor　of　one　day　out　of　the　three　hundred　working　days　in　the　year。　Let　us　further　assume　that　these　are　marketed　at　the　price　of　eighty　cents　each。　There　will　then　be　among　the　purchasers　possibly　one　thousand　to　whom　eight　dollars　per　piece　would　not　have　been　too　dear；　either　because　it　satisfied　some　pressing　want；　or　because　their　great　wealth　make　the　value　of　the　monetary　unit　exceptionally　low　in　their　estimation。　Then　come　perhaps；　five　thousand　more　purchasers　who；　in　case　it　is　necessary；　are　prepared　to　pay　two　dollars。　Another　six　thousand；　who；　in　an　extreme　case；　would　pay　one　dollar　and　sixty　cents。　Another　six　thousand　who　would　pay　only　one　dollar　and　twenty　cents。　Again；　another　six　thousand　who；　at　most；　will　pay　only　one　dollar；　and　finally；　the　last　six　thousand　who　are　prepared　to　pay　only　eighty　cents。　Below　these　come；　perhaps；　another　group　of　six　thousand　who　would　be　willing　to　pay　sixty　cents；　but　for　whom　the　prevailing　market　price　of　eighty　cents　is　too　high；　and　who；　therefore；　must　decline　to　purchase。　　　　　　Assuming　the　conditions　of　this　example；　a　product　of　thirty　thousand　piece　corresponds　to　a　market　price　of　eighty　cents。　But　manifestly；　if　the　productive　power　were　less；　if；　for　instance；　the　number　of　laborers　was　only　eighty　and　the　amount　produced　only　twenty…four　thousand　piece；　the　market　price　at　which　the　whole　product　would　be　sold　might　be　one　dollar。　It　is　equally　clear　that　with　one　hundred　and　twenty　laborers　and　a　product　of　thirty…six　thousand　piece；　the　market　price　might　not　exceed　sixty　cents。　In　other　words；　the　value　of　the　product　of　one　laborer　when　eighty　laborers　are　employed；　would　be　one　dollar；　when　one　hundred　are　employed；　eighty　cents；　and　when　one　hundred　and　twenty　are　employed；　sixty　cents。　In　the　same　way；　the　market　for　the　product　of　every　additional　laborer　above　one　hundred　and　twenty　must　be　found　at　a　still　lower　point　in　the　demand　scale。　Or　at　any　given　time　there　is　a　group　of　the　least　capable　or　willing　buyers　that　corresponds　to　the　last　employed　group　of　laborers。　The　valuation　of　this　group　of　buyers　determines；　in　the　first　instance；　the　value　of　the　product　of　the　last　group　of　workers；　and　through　this；　since　at　the　same　time　and　in　the　same　market；　there　can　be　but　one　price　for　the　same　product；　the　value　of　the　product　of　every　laborer　in　this　branch　of　production。（38*）　　　　　It　even　goes　further　than　this；　and　determine　the　wages　of　the　laborer。　On　the　one　side；　no　entrepreneur　will；　for　any　long　period；　pay　his　laborers　more　than　he　can　obtain　for　the　product　of　their　labor。　The　value　of　the　product　will；　therefore；　be　the　upper　limit　of　the　rate　of　wages。　Again；　under　conditions　of　free　competition；　he　will　not　for　any　long　time　pay　them　less；　for　so　long　as　the　market　price　is　in　excess　of　the　cost　of　production；（39*）　the　entrepreneur　obtains　a　profit；　but　he　or　his　competitors　will　be　tempted　by　this　to　increase　their　production；　and　so　to　employ　more　laborers；　until　the　difference　between　the　valuation　of　the　last　buyer　and　the　wages　of　the　last　laborer　disappears。　　　　　　The　same　forces；　which；　in　every　branch　of　production；　tend　to　fill　the　gap　between　the　value　of　the　product　of　the　last　employed　laborer；　and　the　rate　of　pay　in　this　branch　of　production；　tend　also　to　fill　another　gap。　Under　conditions　of　perfectly　free　competition；　there　cannot；　in　the　long　run；　be　any　serious　difference　in　prices　or　wages　in　those　branches　of　production；　that　are　in　free　communication　with　one　another。　In　the　long　run；　the　product　of　a　day's　labor　and　the　labor　itself　cannot　have　a　value　of　one　dollar　and　twenty　cents　in　the　woolen　industry；　for　instance；　and　only　forty　cents　in　the　cotton　industry。　This　would　immediately　give　rise　to　a　tendency　in　the　productive　forces　to　change　their　occupation；　a　tendency　which　would　continue　to　operate　until　both　of　these　branches　of　production；　together　with　all　others　in　communication　with　them；　had　been　brought　into　a　condition　of　equilibrium。　　　　　　But　where　will　this　point　of　equilibrium　be？　This　must　be　decided　within　that　general　field　of　employment　which　include　all　the　freely　communicating　branches　of　production；　and　it　must　be　decided　upon　the　same　grounds　or　reasons　which　we　have　found　to　be　effective　for　a　single　branch　of　production。　There　is　a　total　or　aggregate　demand　for　all　the　products　of　labor。　This　is　as　limitless　as　our　desire　for　well　being；　for　enjoyment　or　for　the　possession　of　goods；　and　is　graduated　according　to　the　intensity　of　this　desire。　If　our　desire　for　any　product　is　very　intense；　and　our　means　of　payment　abundant；　then　to　us　the　marginal　utility　of　the　product　will　be　high；　while　the　marginal　utility　of　money　will　be　low。　In　other　words；　we　will　be　willing　to　pay　a　higher　price　for　this　product　than　we　would　if　our　desire　for　it　or　our　ability　to　pay　for　it　were　less。　Hence；　in　the　general；　as　in　any　special　field　of　production；　there　may　be　several　strata　of　demand。　There　may　be　one　which　in　an　extreme　case　would　be　willing　to　pay　eight　dollars　for　the　product　of　a　day's　labor。　Another　might　be　willing　to　give　two　dollars；　while　others　would　find　their　limit　at　one　dollar　and　sixty　cents；　one　dollar　and　twenty　cents；　at　one　dollar；　and　at　eighty　cents。　There　may　remain　still　others　who　desire　to　purchase；　but　whose　wants　are　not　sufficiently　pressing　or　whose　purchasing　power　is　so　limited　that　they　either　will　not　or　cannot　pay　more　than　fifty；　forty　or　twenty　cents；　and　even　less；　for　the　satisfaction　of　that　want　to　which　the　product　of　a　day's　labor　would　be　devoted。　　　　　　To　meet　this　practically　unlimited　demand　we　have　a　labor　power　which　in　comparison　with　this　demand　is　always　limited。　It　is　never　sufficient　to　satisfy　all　our　desire；　if　it　was　we　would　be　in　paradise；　we　must；　therefore；　always　choose　which　of　our　desires　we　will　gratify。　Under　the　influence　of　self…interest　we　will　satisfy　them　according　to　the　height　or　amount　of　the　fee　which　we　are　willing　to　pay　for　their　satisfaction。　That　stratum　of　the　demand　which　is　prepared　to　pay　eight　dollars　for　a　day's　labor　will　not　suffer　any　inconvenience　for　lack　of　the　desired　commodity。　So；　too；　that　stratum　of　the　demand　which　is　willing　to　pay　two　dollars　will　not　suffer　any　inconvenience。　Nor　will　those　suffer　that　are　prepared　to　pay　one　dollar　and　sixty　cents；　one　dollar　and　twenty　cents；　one　dollar；　etc。　But　the　point　must　finally　be　reached　where　such　satisfaction　cannot　be　obtained。　This　point　will；　of　course；　vary　with　the　circumstance　or　conditions　of　particular　lands　or　time。　Here　eighty　cents；　there　sixty　cents；　and　elsewhere　forty　or　even　twenty　cents；　but　such　a　point　will　always　and　everywhere　be　found。　Let　us　assume　a　concrete　case　in　which　this　point　is　at　eighty　cents。　The　existing　productive　power　is　here　fully　employed　in　the　satisfying　of　those　wants；　for　whose　satisfaction　we　are　willing　and　able　to　pay　eighty　cents　for　a　day　of　common　labor。　In　this　case　the　stratum　of　the　demand　whose