A reply to Jerry's ope-l 3316.
Jerry wrote: "The issue I was posing, following-up on a comment to Duncan by
John, is whether the distinction between individual and social values can be
grasped within a one-sector model. I believe it can't be ...."
A question: what do you think about my one-sector example (in my paper on the
Okishio theorem in the Freeman/Carchedi volume) that vindicates Marx's
argument that it is "rational" for a firm to introduce labor-saving techniques
which lower the general (social) rate of profit, because the firm can sell at
(or close to) social value, which is higher than individual value, pocket the
difference, and thereby raise its individual profit rate?
Andrew Kliman