Misallocation of land use and how it would have been costly to the plantation.

The plantation was controlled in as a socio economic organisation. Land, at that time

costing very little caused the owners off the plantation s to purchase large amounts. However

this made the allocation in relation to how it was used in terms of technology, labour and

capital was not rationally done. Therefore this created a situation of poor allocation of land

where the land was more than the planters actually needed. This then raised situations where

diminishing marginal returns, Shortage of resources and poor use of resources all created

some form of financial hindrance on the plantation.

Due to the large amounts of land which were available to the plantations and the cheap cost

of labour the plantation owners took advantage of the low cost. What they did not understand

was that which it may have been of low cost to them to purchase these lands and acquire the

labour needed for production of resources it would be costly to them further down the line.

Meaning that more cost came with such resources because there must be proper utilisation of

the land in terms of the allocation in regards to technology, structuring of labour and crop

diversification and allotment, in which the planters failed to do. As a result of this there was

a situation of diminishing marginal returns where with each additional unit of labour the

levels of production decreased as a result of the cost of production increasing. The labourers

had to be provided for also wages which were very little were not distributed in a proper way

and as a result land had been misused to the point where slave and indentured workers

provision grounds had to be given up for the planting of plantation crops.

Although it was stated that there was too much land in terms of what the planters had actually

needed there was a shortage of resources. These shortages were in relation to the cost of the

land and production of raw materials, due to the poor allocation of land production of raw

materials became costly for the planters. Also it is important to note that the plantation

system was an enterprise and being that there will be competitors. This alongside with

technology because technology was important in the production of the raw material sent up

to the metropolitan to be manufactured to create the final product determined the

development of a plantation.

There was an abundance of land which on the plantation which had the potential if

certain measures had been taken upon so that the land could be used sufficiently. With that

being said the plantation economy had been affected due to poor land use which in turn

caused decreases in productivity which then caused a decrease in investments . The planters

failed to produce at an optimal level, which means that the amount that they were producing

was not up to par to the quantity that the investors sought necessary for manufacturing. They

failed to use the proper amount of resources such as technology and the ways in which the

land were used became costly hence the reason for the low productivity and as a result most

of the planters sold their land due to the amount they had to spend.

In regards to the allocation of land the, planters could have been more efficient in the

allocation which as a result would have been less costly to the owners. However they did not

take such measures and as a result, diminishing marginal returns, Shortage of resources and

poor use of resources were all effects of the financial instability on the plantation.