John Ernst wrote: > Thanks for the bit of clarity, Duncan (OPE-L 4590). > > At 04:37 PM 12/01/2000 -0500, you wrote: > >I think Marx just didn't get that far. He seems to have been > >following the Smithian theory of competition, which envisions capital > >as moving from low profit rate sectors to high profit rate sectors. > >As you've pointed out, when capital goods have long lifetimes, > >there's always a major expectational or prospective element in > >estimating the profit rate, so presumably the relevant profit rate > >for this competitive movement of capitals would be a prospective, not > >necessarily a realized profit rate. And technical change could make > >the expectations very wrong. Perhaps this is one of the factors that > >led the Classical political economists to view competition as a > >gradual, imperfect tendency, that manifested itself in a > >"gravitation" of prices around natural prices (or prices of > >production) rather than as an attained equilibrium. > > > >Duncan > > Given that we are to use an average RRI in computing prices > of production, I'm still unclear and repeat my question. > > "How do you compute the values that are to be transformed from a given > set of physical quantities?" ____________________ It is because computation of values from a given set of physical quantitites has nothing to do with RRI. Cheers, ajit sinha
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