Value calculation is used to determine the exchange value of goods according to the Marx's law of value while price is calculated to determine the same exchange relation but according to the Law of Equal Rate of Profit.
Abstract labor as the only substance of valuenot use value
In capitalism , the capitalist is concerned with the means of production .He purchases the labor power or the capacity of the labor to work. The capitalist doe not have knowledge or interest about the useful labor or the specific use values of the labor. He hired the worker only to produce the commodities that will be exchanged in the market. So the capitalist was only concerned about the labor of the laborer in general i.e. abstract labor.
Price as empirical appearance of value
The equation 9.2 shows that the value of the commodity embodied as labor consists of deal labor and living labor. The living labor consist of necessary labor and abstract labor . So the value of the commodity is equal to dead labor plus necessary labor plus abstract labor.
Equation 9.3 shows the relation between the price of production with the cost of commodities used in production i.e. constant capital which is deal labor, the cost of labor used in production i.e. variable capital and the profit i.e. the surplus capital.
What are the relations between them? Explain the transformation from value to price
What is equation no 9.5 and why do we need c/v to be equal in all sector
The equation 9.5 shows that rate of profit is equal to surplus value to total capital. The rate of profit is defined in value terms so if we divide by v i.e. variable capital then rate of profit will be rate of surplus value divided by organic composition of capital plus one. So if organic composition of capital remains the same then rate of profit varies with rate of surplus value.
What is organic composition of capital(C?V)?
The ratio of dead labor (c) to live labor(v) is known as organic composition of labor.
Equal rate of profit? Why? Keyword: competition
Marx assumes that rate of profit is equal between industries and firms. This equality takes place when there is mobility of capital from low profit areas to high profit areas. There is competition among the capitalists that lead to equality of profit in all the industries.
Price deviate from value to? Redistribute surplus value ..Explain
As capital is self expanding value so the capital passes through three stages. In the first stage the capitalist is concerned with the commodity and labor market with his money capital by which he purchases the means of production. In the next stage the labors transfer the means to production to the final good by their labor power and surplus value. So the capital moves from the productive capital to commodity capital.
Study the table
How did Marx transform surplus value to equal profit on price?
In this table the third stage is shown where the capitalist returns to the commodity market sell the commodity and turns then to money. So commodity capital in converted to money capital.
The system that prevents the workers from realization?
The expanded capital value in the commodities that are produced are to be realized and converted to money capital. Realization of the increased capital value is the function of commodity capital.
Destructive of capitalist system.
Labor power is not capital till it is purchased and becomes productive capital but not commodity capital. Capitalist depend on the social reproduction of labor power . This causes the use of political, ideological and economic power .So labor are pressurized to work.
References
Mandel, E. (1979). Introduction to Marxism. London: Ink Links.
