5 KARL MARX 153 
An Overview of Marx 156 
Marx's purpose Intellectual sources of Marx's ideas Marx's 
theory of history A closer look at the dialectic Socialism and 
COMMUNIST 
Marx's Economic Theories 163 
Marx's methodology Commodities and classes Marx's labor 
theory of value Marxian algebra Surplus value —a digression 
Back to the Marxian algebra The failure of Marx's labor theory of 
value Back to labor cost and labor command Marx's solution 
and some implications 
Marx's Analysis of Capitalism 173 
The reserve army of the unemployed Falling rate of profit The 
origin of business crises Cyclically recurring fluctuations 
Disproportionality crises The falling rate of profit and business crises 
Business crises—a summary The concentration and centralization 
of capital Increasing misery of the proletariat 
Summary and Evaluation 188 
Suggested Readings 190 
THE EMERGENCE OF MARGINAL ANALYSIS: 
MARGINAL UTILITY 191 
Some Historical Links 193 
Classical theory in retrospect An overview of the period 1870-1900 
Forerunners of marginal utility theory Gossen’s Laws 
Jevons, Menger, and Walras 201] 
A revolution in theory? Inadequacies of the classical theory of value 
What is utility? Comparisons of utility Utility functions 
Utility, demand, and exchange The value of factors of production 
Criticism of Jevons and Menger 
Walras’ General Equilibrium System 218 
Partial and general equilibrium analysis Walras in words Walras 
in equations Walras in retrospect 
The Early 1870s—a Summary 23) 
Suggested Readings 233 
h