in the theory of value and prices.

63

§ 3.

An analogous mechanism and discussion applies to the separationof production into retailing, wholesaling, transportation and even thevarious technical processes distinctive of the production of eachcommodity. In making worsted for instance there are some 16processes having this sort of dependence.

The reactions and equilibrium in the real world are still morecomplicated than those here presented. Not only is there equilibriumin one market as New York city , but a mutual dependence of vari-ous markets. The rate of transportation determines in part theamount of dependence and the amount of communication deter-mines in part the rate of transportation. As Cournot* says, “ * *le syst&me economique est un ensemble dont toutes les parties setiennent et reagissent les unes sur les autres.”

End of Part I.

* Principes mathematiques, Ch. XI, p. 146.