I. Introduction, 347. — II. Production functions and producer equilibrium, 352. — III. Demand functions and supply of labor, 356. — IV. Equilibrium under laissez-faire, 358. — V. Ideal output, 362. — VI. Taxes, bounties, and optimality rules, 366. — VII. Analysis in terms of consumers' surplus, 373. — VIII. Dynamic stability of the adjustment process, 381.