Page:Indian Journal of Economics Volume 2.djvu/42

STANLEY $EYON$ I am indebted to Fish's En?neering Economics ? for this reference, and I would recommend engineers and others who ?nay wish further authority for what I have written in this sectloft to refer to pp. 40-8 of that book, which also contains many useful suggestions, formulm and data for the solution o! other engineering problems. 6. Spee of cheapest. rou?es Trans?t.--Merchants usually seek the for despatching goods, except in the case of perishable commodities, when speed of transit may become the most valuable consideration. In the case of non-perishable goods the interest lost on capital locked np during transit is the only normal reason for seeking. rapid conveyance; but this may become a considerable item to some merchants who can make 25, 50, or even 100 per cent per annum on their capital. The availability of rapid transit may be of vital importance in developing certain industriez, ?.?. fruit growing, dairying and sea-fisherles. But the fact that increased speed of transit of goods is of great benefit to almost all trades and industries is generally over- looked. A railway system which on the average ?akes a w.eek to transport goods 200 miles will not develop industries to the same degree as if it were worked so as to take usually only 200 miles. 24 hours to transport goods 7. Marginal Prod,?.ctiv;ty of Capital.--An idea fundamental importance in as marginal productivity. -ntmost importance in practice in every kind of bnsiness of economics is that known It is a principle of the with public works it In every undertaking combined which we nndertaking; but in connection is very apt to be overlooked. many factors o[ production are , .am?, labor, capital, may classify u?der five headings' I ' management and enterprise. The owner or enterpriser t IdoOmw-Hiil Book Co., New York, 1915,