ABSTRACT
The reviews of Marshall's Principles of Economics suggest that the welcome given to the Principles was spontaneous and almost general. It appears that there is a good deal in Keynes's remark in The General Theory that the classical theory represents the way in which we should like our Economy to behave. To a large extent this was true of Marshall's theory also, and the immediate general result of Marshallian economics was something like that of Von Wieser's Social Economics. The next stage in the evolution of the theory of the firm can be seen in the theoretical writings of Henry Cunynghame and Edgeworth. Cunynghame's views on the successive cost curves were first expressed in his articles in the Economic Journal; they were later elaborated in his Geometrical Political Economy. There is also a growing recognition in these writings of the significance of the indirect and remote effects of economic changes that initially relate to a particular sector of the economy.
