In reply to OPE-L 4893: Yes, Fred, you're right that our assumption that initial prices = values, together with the assumption of simple reproduction, implies that the prices of production change because the general rate of profit changes, not because technology has changed. I hadn't put the pieces together. My apologies. You're not right, however, when you say that this is contrary to Marx's theory. As Eduardo has pointed out, and as I noted in OPE-L 4871, Marx clearly says that production prices can change because the general profit rate changes. He also clearly says that the general profit rate changes in response to changes in *market prices*, whatever their cause. It follows that production prices change in response to changes in market prices. Andrew Kliman
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