Simon writes:
I don't understand the specification. Why should anything different happen
in Period II if the uniform rate of profit does not change?
John responds:
The relation between total price and total value changes since the
labor added in the production process of period II creates less or
more value than average since it is working with a capital of a
larger or smaller composition respectively. Living labor does not
add the same amount of value expressed in prices as before.
Paul C now replies
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The amount of value created by labour is quite independent of the
organic composition of the capital with which it works. The
price of production hypothesis is that goods produced under high
c/v ratios sell at prices above their values, not that their
values are higher.
Paul Cockshott
wpc@cs.strath.ac.uk
http://www.cs.strath.ac.uk/CS/Biog/wpc/index.html