... assumed to have a finite value but perhaps it can continue increasing to the point of exhaustion or death. Similarly if we know the productivity of one labourer it does not imply that every other employee will have the same productivity value. Essentially the contract between a capitalist and his workforce is incomplete. Whereas a machine can guarantee a certain amount of output in a given time provided it is maintained, the productivity of labour can depend on the wage they are given, their personality, their health and especially their mental or physical capabilities. A contract can never stipulate the maximisation of each of these factors as they are not always known when labour is employed. Clearly the firm will find it difficult to maximise productivity of labour if it cannot place a specific value on the maximum productivity achievable. Hodgson provides a very interesting fact when he reveals that ...

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