3.5 — Marshallian Economics II: Supply & Theory of the Firm — Readings
Monday, October 26, 2020
- Finish Ch.10 “Alfred Marshall and Neoclassical Economics” in Landreth & Colander
- Ch.10 “Marshallian Economics: Cost and Supply” in Blaug
The following Wikipedia entries can also provide more background:
- Alfred Marshall
- Tax incidence
- Long run and short run
- Fixed cost
- Variable cost
- Cost curve
- Economies of scale
- Economies of scale in Marshall
- Quantity Theory of Money (Cambridge Approach)
Questions to Help Your Reading
- What are the four “periods” (or “runs”) according to Marshall? What is different about the supply curve in each?
- What do you recognize from your principles & intermediate microeconomics courses from Marshall?
- What is a “quasi-rent”? Why does it only exist in the short run?
- What is a constant-cost, increasing-cost, and decreasing-cost industry?
- What are interval vs. external economies of scale? What are the implications for competition vs. monopoly?
- How does Marshall’s view of money and the quantity theory differ from Fisher?