From: Gerald A. Levy (Gerald_A_Levy@MSN.COM)
Date: Thu Oct 14 2004 - 08:21:17 EDT
>>> It is always an option, ontologically, to treat a firm's production as one and the same commodity. <<< Phil, Why? What is the ontological claim that you are making here? >>> Prices deviating from values? Impossible! <<< Since you have framed the issue in this thread on the micro level, consider the following possibility: Suppose there is one firm which, using the same technology and the same production facilities, produces measles vaccine and influenza vaccine. Suppose further (even though I think it is unrealistic in this instance) that the firm puts a price on both commodities which is equal to their value. Now suppose that the price of the measles vaccine remains constant whereas the price of the flu vaccine *after it has already been produced* is marked-up by 800%. If prices can not deviate from value then it therefore follows by your reasoning that the *value* of the flu vaccine has increased by 800%, right? The actual reason for the price increase might be a factor not directly related to production conditions at this firm, e.g. *excess demand* for the flu vaccine. Doesn't it then follow that if it is impossible for price to deviate from value that value can increase *solely* because of a change in demand conditions? If that is the case, then value can be created by *firms in the market*, rather than by *workers in the production process*. Are you really comfortable with that conclusion? In solidarity, Jerry
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