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Running head: ECONOMIC THEORY RESEARCH PAPER
Economic Theory Research Paper
ECONOMIC THEORY RESEARCH PAPER
A classical evaluation of the classical economists depicts that most of the classical
economist did not carry out an in-depth exploration of the theory of the firm. One of the
remarkable individuals who made a significant contribution to the evaluation of the theory of the
firm is denoted as Dionysius Lardner. Lardner is among the writer who is presumed to be proto
neoclassical. Drawing illustrations from his book the “Railway Economy” in the year 1850.
Drawing illustrations from the analysis of the railroad pricing strategies, it is vital to ascertain
that Lardner incepted a simple and discriminating monopoly evaluation.
According to the theorist, a monopoly firm should be evaluated and analyzed in terms of
the total revenue and the total costs of the firm. Through the embracement of the implicit
demand curve, the theorist explored on the monopolist firm through exploring both the graphical
and the mathematical concepts of the implicit demand curve. One of the significant contributions
that Lardner made towards the aspects of economics is that the theorists carried out an in-depth
analysis and evaluation of the neoclassical theory of the firm. Through the modeling of the
profit-maximizing firm and analysis, and evaluation of the price choice through the use of cost
curves, the revenue curves, and the implicit demand curves, Lardner succeeded in analyzing and
evaluating the price choice of a firm (Schabas, 2005).
Lardner depicted that profit maximization would occur if the marginal cost of the firm is