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Damage, as in my arithmetic example with 3 and less bull-calves.
It is possible to think that time the cattleman pays for all damage, the farmer will decide to increase
Crops as soon as the cattleman becomes its neighbour. But it not so. If a crop to
It was on sale in the conditions of a perfect competition, limiting costs were
Are equal to the price of processing of crops, and their any expansion would lead to reduction
Profits of the farmer. Taking into account a damage the farmer will sell in the open market less, but
Its gain at the given volume of output remains former, as
The cattleman will pay a market price of the pitted crop. Certainly, if
The cattle breeding generally involved it a crop then it could
To raise the price of corresponding cultures and then farmers would expand crops. But I
I wish to concentrate attention to the separate farmer.
I have told that occurrence on the next site of the cattleman will not call increase
Volume of output, or, can be more exact, volume of crops. Actually, if
The cattle breeding also can have any influence, it is faster reduction of crops.
That reason that for any given strip of the earth, if value of the poisoned
Crop parts it is so great that the receipt of the remained crop will be
It is less, than the general expenses on cultivation of this strip, both for the farmer and for
The cattleman it will appear to agree more favourably that it is not necessary to cultivate this strip.
It can be cleared by means of an arithmetic example. We will assume in the beginning,
That value of the crop received from processing of the given site, is equal 12 dollars,
That costs of processing of this site are equal 10 dollars, and the net profit from
Site processings I am equal 2 dollars I assume for simplicity that the earth
Belongs to the farmer. Now we will assume that in the neighbourhood there is a cattleman
Also that value of the poisoned crop is equal 1 dollars In this case 11 dollars
The farmer receives from sale in the market and 1 dollars - from the cattleman for it, and
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