1. For a recent survey of the orthodox theory of production see G. C. Archibald (ed.), Theory of the Firm, Selected Readings (London, 1974). The theory of trade is based on the theory of production, see for example
2. M. C. Kemp, The Pure Theory of International Trade and Investment (Englewood Cliffs, 1971).
3. The discussion below owes much to the classic analyses by R. H. Coase, ‘The Nature of the Firm’, Economica, 4 (1937), 386–405;
4. N. Kaldor, ‘The Equilibrium of the Firm’, Economic Journal, 44 (1934), 60–76; and
5. E. T. Penrose, The Theory of the Growth of the Firm (Oxford, 1961).