aramos@aramos.bo wrote:
> > For Marx, value does not equal the cost of production,
> > but the cost of reproduction. The reproduction costs
> > have fallen, therefore so too does the value of the
> > 1996 vintage coffee.
>
> In 1997, the labor time necessary to produce 1 kilo has been
> reduced to 90 hours. Let us suppose that the MEL remains
> the same. When I sell my stocked kilo of coffee in 1997, I
> only pocket 90 hours * $1/1 hour = $90. What would then be
> my profit rate as merchant capitalist? Do I gain or lose?
You obviously lose $10, but if technical change is uniform, then the $90
will purchase a greater use value of goods -- more of Andrew's rubber
measuring stick.
-- Michael Perelman Economics Department California State University Chico, CA 95929Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu