Hi John, If the production price is defined as cost price + average profit on production capital invested, then this implies that the same profit rate is applied to different capitals with different organic compositions.
The regulating production price is a price formed by the cost price + the profit which accrues if the profit rate is equal to the average. The average profit rate is "uniform" in that sense. Of course, at any time the actual profit rates of different capitals will be higher or lower that the average, but the suggestion is that competition creates pressure to approximate at least an average profit rate - this is a requirement for the long-term viability of business. The longer-term "dynamic" of capitalism is therefore to shift capital to placements where the profit rate per unit of capital invested is higher. Jurriaan ----- Original Message ----- From: "John Ernst" <[email protected]> To: <[email protected]> Sent: Monday, March 14, 2011 7:38 AM Subject: [Pen-l] Marx's Uniform Rate of Profit > Given the contents of Chapter 10 of Book 3, it's difficult to > understand, you have to be a bit slow to "think" that Marx assumed a > uniform rate of profit. > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
