ABSTRACT
The previous chapter showed that economists have, as central to their discipline, theories of new firm formation or entrepreneurship. These theories are based primarily upon factors which influence the slope and position of the demand curve for entrepreneurship, such as changes in demand for the final product, or in the relative costs of inputs. The supply curve of entrepreneurship, on the other hand, is assumed by economists to be invariant or, where movements do occur, their explanation is regarded as beyond the discipline of economics.
