ch action going on, it shows that the
_entrepreneurs_ have no incentive for taking it.

_Values at a Static Level only when the Gains of Labor in the
Different Industries are Equalized._--If labor is creating more in one
subgroup than in others, as it often is in a dynamic condition, that
fact means that some _entrepreneurs_ are making a profit, and,
according to the principle stated in the preceding paragraph, this
means that values are not at their static or "natural" level. If,
owing to new methods or to some other cause, a given amount of
labor[2] in the subgroup that produced the A''' of our table creates
an amount of that product which sells for more than the B''' or the
C''' which labor of like quantity makes, then the manufacturers of
A''' would obviously get a margin of profit. They would not be obliged
to pay for labor any more than the market rate, and that, as we shall
see, cannot exceed what labor produces in the groups B''' and C'''. In
A''' the labor creates more and the employer pockets the difference.
In saying this we assume one fact which we undertake later to prove;
namely, that there is a definite amount of each product which can be
attributed to labor alone as its producer. Capital and labor work
together, but each is, in effect, the creator of a certain fraction of
their joint product.

[2] In measuring labor we, of course, take account of the
quality of the men who perform it, and the work of a skillful
man is counted as more units of labor than that of an
unskillful one.

_Values Static only when the Gains of Capital in Different Industries
are Equalized._--If capital is creating more in one industry than in
another, there is a margin of profit for the _entrepreneurs_ in the
exceptionally productive industry. They pay as interest on the capital
they use only the market rate, which is what equal amounts of capital
can produce and get elsewhere. If they produce more in the one group,
the _entrepreneurs_ there can pocket the excess as they did in the
case of the product of labor. We assume that there is everywhere a
definite product that can be attributed to capital alone.

_Values Normal when Moneys paid out by Entrepreneurs equal Moneys
Received._--In the preceding paragraphs we have spoken of exchange
values as being static under certain conditions, but we might have
expressed the essential fact by saying that prices are static under
these conditions since the money a produc