Explain Sraffa's critique of the Marshallian industry supply curve based on diminishing returns under the general case.

for example when it says that the industry accounts for a very small share of the total quantity of the fixed factor. and

The Marshallian story of supply curve based on diminishing returns/increasing costs does not hold in general without contradicting its own assumptions ofnpartial equilibrium and perfect competition

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Piero Sraffa an Italian economist presented a critique of the Marshallian industry supply curve based on diminishing returns under the general case Sr... View the full answer