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Copyright © Cambridge Political Economy Society

research-article

Increasing returns and competitive equilibrium—the content and development of Marshall's theory

Renee Prendergast

Departmant of Economics, Queen's University Belfast

Abstract

‘The root of the difficulty about increasing returns has always been to understand how, where they prevail, equilibrium can exist without the whole supply of the commodity in question becoming concentrated in the hands of one producer.’ (Robertson, 1930, p. 67)

Manuscript received September 17, 1990; final version received December 30, 1991.


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