What, if anything, is wrong with the following formula for the rate
of profit? (Note: the following formula is for the profit rate in
contemporary capitalism and does not purport to be a
rendition of Marx's formula)
Pz ed -- Pm m -- w
r = __________________________
Pc (1/cu) (cg in use)
where:
r = profit rate
Pz = price of output
e = amount of gross output produced per unit of work done
d = work done per hour
Pm = price of materials used and wear and tear on machines
m = amount of materials used and wear and tear on
machines per hour of labor
Pc = price of [constant] capital goods
cu = capacity utilization ratio or the percentage of owned
[constant] capital goods actually in use
cg in use = amount of [constant] capital goods in use per labor
hour
Extra credit: answer the above question *plus* identify the author(s)
of the above formula.
In solidarity, Jerry
This archive was generated by hypermail 2b30 : Sun Dec 02 2001 - 00:00:05 EST