From: glevy@PRATT.EDU
Date: Sat Sep 08 2007 - 14:05:47 EDT
> I'm thinking that it is not unreasonable that the level of circulating > constant capital is a fixed ratio of fixed capital, since the fixed > capital is designed with requirements for circulating constant capital > inputs, like raw materials. Hi Paul Z: OK. Thanks for the explanations. I gather you are implicity assuming that there is full capacity utilization? If not, (even without technological change, increases in the intensity of labor, or increases in absolute surplus value) then output could be increased using the same quantity of fixed capital but with additional circulating constant and variable capital. But, that would change the ratio of Cf to Cc and hence not be allowed under the assumption you are making. An alternative mught be to treat the level of Cc as a function of the level of (expected) output. If you are (for the time being) assuming no technological change then an increasing quantity of commodity output would require an increasing quantity of constant circulating capital input. Just a thought. In solidarity, Jerry
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