ABSTRACT
In a recent paper, J.N.Wolfe (1954) has interpreted P.Sraffa (1926) as having exposed a logical inconsistency in Marshall’s Principles of Economics (8th edn, 1920). According to Wolfe, Sraffa interpreted Marshall as being concerned with perfect competition and yet as allowing his representative firm to possess unexhausted internal economies; he therefore believed that Marshall was inconsistent, for the two phenomena are incompatible. Wolfe himself interprets the Marshallian representative firm as an oligopoly model.
