MARGINAL ANALYSIS EXTENDED AND 
METHODOLOGICAL CONTROVERSY 235 
Marginal Analvsis Extended: The Second Generation 258 
Marginal Productivity Theory 240 
Litroduction Principle of diminishing returns The new and the 
old Product exhaustion Wicksell on product exhaustion 
The ethical implications of marginal productivity theory 
Marginal productivity as a theory of employment Marginal 
productivity theory criticized 
Profits and Interest 258 
Profit theory Capital and interest theory The problem of 
interest Bohm-Bawerk's theory of interest Fisher on interest 
The problem of interest: A summary The rate of interest. level of 
prices, and income 
Methodological Controversy 273 
Introduction The older historical school 
school The historical method in England 
Summary 277 
Sugeested Readings 
la 
3 ALFRED MARSHALL 279 
The Father of Neoclassicism 281 
Scope of economics Marshall on method Understanding the 
complex—the method in action The problem with time The 
Marshallian cross Marshall on demand Consumers’ surplus 
Faxes and welfare Marshall on supply Marshall on distribution 
Quasi-rent Stable and unstable equilibrium Economic 
Auctuations, money, and prices 
Summary and Critical Fvaluation of Marshall 313 
Succested Readings 316 
9 HETERODOX THEORY SINCE MARSHALL 317 
Thorstein Veblen 320 
Veblen's criticism of orthodox theory Veblen's analysis of capitalism 
I'he dichotomy The leisure class and the higher learning The 
stability and long-run tendencies of capitalism Veblen’s contribution