The first half of this book deals with the microeconomic theory of production, cost, and derived input demand. The is italicized because there is no truly alternative theory to explain the phenomena and behavior in question. This body of theory may validly be called neoclassical theory, but one should emphasize that it is neoclassical microeconomic theory dealing chiefly with microeconomic pricing. I doubt that there are many who would reject this approach to microeconomic behavior, especially that portion of the theory which does not involve the assumption of profit maximization.

The second half of the book is another matter because there I turn to the neoclassical theory of aggregates, especially technological progress and relative factor shares. In this part, the book is discursive in that neoclassical theory is presented in its most favorable light, though its limitations are noted and appraised in chapter 12. Correspondingly, those aggregate theories that purportedly ‘compete’ with neoclassical theory are criticized without constructive suggestions. In short, my point of view is uncompromisingly neoclassical. While I personally think the resulting work constitutes a fair appraisal of modern aggregative theory, there are some who would disagree.

Something more should be said about chapter 12. In the initial draft this chapter formally ended with the multi-sector model of technological progress and relative factor shares. Since the exposition of neoclassical aggregate theory in chapters 11 and 12 depended entirely upon the assumption of J. B. Clark real homogeneous capital, I added an appendix on Samuelson's ‘Parable and Realism in Capital Theory’ in order to show that the results of neoclassical analysis could be obtained from fixed-proportions, heterogeneous capital models.