[OPE-L:351] Clarification re price/value theory

akliman@acl.nyit.edu (akliman@acl.nyit.edu)
Fri, 27 Oct 1995 09:53:34 -0700

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In ope-l:349, Paul C. notes that he agrees with me (Andrew) that a theory
is needed to explain why (in essence) profits received differ from surplus-
values produced. But, he responds, facts are needed to build such a theory.

I need to clarify: I think we're talking about 2 different kinds of "theory."
Evidently, Paul is referring to a theory that will account for *specific*
differences between profit and surplus-value in specific industries. I was
trying to say that if one says value is determined by labor-time, then one
needs to explain how this law is not violated when there are differences
between profit and surplus-value in individual industries. This is a
theoretical question, and one that does not require empirical information
in order to be answered. It requires a general answer, one applicable to
any and all possible patterns of discrepancy between profit and surplus-
value.

A general answer of this sort would be that the general profit rate is
s/(c+v), and that therefore total price = total value and total profit =
total surplus-value ;-) :-).

Andrew