================= HES POSTING ================= Oh, the beauty of searchable electronic texts!! A quick search of Marshall's Principles of Economics on-line at http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/marshall/ produced the following -- the final paragraph in chapter 9 of Book IV. As Marshall indicates in the last sentence, chapter 10 discusses external economies at some length. "We may divide the economies arising from an increase in the scale of production of any kind of goods, into two classes -- firstly, those dependent on the general development of the industry; and, secondly, those dependent on the resources of the individual houses of business engaged in it, on their organization and the efficiency of their management. We may call the former external economies, and the latter internal economies. In the present chapter we have been chiefly discussing internal economies; but we now proceed to examine those very important external economies which can often be secured by the concentration of many small businesses of a similar character in particular localities: or, as is commonly said, by the localization of industry." So, can we take this notion back before Marshall? ============ FOOTER TO HES POSTING ============ For information, send the message "info HES" to [log in to unmask]