the economics of alfred marshall

493 Pages·2009·8.4 MB·English

by  H. J. Davenport

REPRINTS OF ECONOMIC CLASSICS
THEECONOMICSOFALFREDMARSHALL
Abo PubliJhed in
Reprintsqf Economic Classics
By HERERT J. DAVENPORT
VALUE AND DISTRIBUTION [1908]

THE ECONOMICS OF
ALFRED MARSHALL
BY
H. J. DAVENPORT
LATE PROFESSOR OF ECONOMICS IN
CORNELL UNIVERSITY
REPRINTS OF ECONOMIC CLASSICS
Augustus M. Kelley, Bookseller
New York I96S
Original edition I9J5. ReprintedI965 by an-angement with
Cornell University Press.
Library ofCongress Catalogue Card Number
65-I9648
PRINTED IN THE UNITED STATES OF AMERICA
by SENTRY PRESS, NEW YORK, N. Y. 100I9
FOREWORD
FORmanyyearsinclassroomandseminarProfessorDavenport's
primary concern was with criticism and constructive amend
m€nt of the doctrinal content of the classical and neo-classical eco
nomics. His attitude toward systematic economic theory was never
thatof the iconoclast. Hewasindeed a jealousguardianoftheeco
nomic discipline, and thought of himself as contributing to the
perpetuation of an improved bodyof economic doctrine. Professor
Davenport's own contributionsto economic theorywere frequently
couchedintheformofmoreorlesscontroversialcommentuponthe
doctrinesofothereconomists. Inhisownthinkingand inhis teach
ing Marshall especially was a perennial point of reference. The
present study, though mainly written in the two years following
Professor Davenport's retirement from active academic duties, is
thereforetheproductofmorethan thirty years' preoccupation with
Marshall's economics.
The book is in one sense a finished product and in another it is
not. It covers all the ground which Professor Davenport inten~ed
to cover and says on all points substantiallywhat hewished to say.
Hisdeath, however, prevented completion ofthefinal revising and
polishingwhich was under way, and.to this fact may be attributed
much unevenness of quality.
The book has been prepared for publication by a committee of
the department of economics of Cornell University consisting of
PaulT. Homan andM. SladeKendrick, in collaborationwithMar
garetF.Milliken, formerlyofthedepartmentofeconomicsofStan
ford University. The members of the committee decided that the
manuscripthadreachedastagewhichmadeitunwisetoattemptedi
torial improvement even of the less perfect parts. It is therefore
published almost exactly as it was left. A few obvious errors have
beencorrected, and anumberof repetitivequotations have been re
moved. Specialmention must be made ofthe services rendered by
Miss Milliken who assisted ProfessorDavenportin the preparation
ofthemanuscriptatallstages.

CONTENTS
PAGE
I INTRODUCTION............................. 1
II. NEO-CLASSICAL SYSTEM OUTLINED. •. •••••••••• 15
III DEMAND AND SUPPLY MECHANICS.. . .. . . . . .. . . 36
IV UTILITY, PRICE, AND MEASUREMENT .•........• 69
V COSTOFPRODUCTION. ••••••. •. .• . •••••••••.• 107
VI COST OF PRODUCTION (continued) 123
VII PRICE - DETERMINING AND PRICE -DETERMINED
COSTS: CAPITAL .•.••••.. 140
000.0.0..........
VIII THETESTSOFLANDCAPITAL 165
00000. o •••• 00' 0 • ••
IX OPPORTUNITY COSTS: VARIOUS LAND COSTS. •••• 215
X QUASI-RENTS: EQUIPMENT AND EFFORT ••• 253
0 • 0 ••
XI EMPLOYEEANDENTERPRISERLABORRETURNS •••• 288
XII NORMALS AND REPRESENTATIVES o. 328
0 0 .0' •••• 0"
XIII COSTSIN GENERAL o. 375
0 0 • 0 • 0 0 • 0 0 0 ••• 0 0 0 • 0 0 0 •••
XIV LAWS OFRETURN 418
0 • 0 0 • 0 0 0 0 o •• 0 •• 0 ••••• 0 0 • • ••
XV INTEREST •. 439
0 ••• 0 • 0 • 0 0 ••• 0 0 0 ••• 0 00 • 0 •• 0 •• 0 0
INDEX 479
00 •• 0000.000 ••• 0 0 ••••• 00............