Re: [OPE-L] price of production/supply price/value

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sun Feb 05 2006 - 11:44:30 EST


On Sun, 29 Jan 2006, Ian Wright wrote:

> OK. Cost price really is price, because it is advanced to production,
> and represents past production. Value-added, in contrast, is not
> determined by price, but by actual labour-time, because it is current
> production. So, as far as I understand it, you differ from Marx in
> ch.9, who doesn't make this distinction between (i) cost-price as
> price and (ii) new value as a function of labour-time and MELT (happy
> to be corrected). No quarrel if you differ from Marx, because his
> transformation is incomplete, by his own admission.

I presume by Chapter 9, you mean Volume 3, right?

We need to be clear that there are two main stages of analysis in Capital:

1.  The macro determination of the total value and surplus-value in Vol. 1
(the level of abstraction of capital in general).

2.  The micro determination of individual prices of production (and the
other individual parts of surplus-value) in Vol. 3 (the level of
abstraction of competition or many capitals).

The distinction between cost price and new value produced belongs to the
macro theory of Vol. 1, and thus is used to determine the total amount of
value and surplus-value, which in turn determines (in part) the general
rate of profit.

You are right that the distinction between cost price and new value
produced plays no role in the micro theory of individual prices of
production in Vol. 3.  There is no disagreement between me and Marx on
this issue.  But this distinction plays an essential role in the prior
macro theory in Vol. 1.

Comradely,
Fred


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