[OPE-L:4894] RE: Re: Give us some NUMBERS, Fred! (was: rent and theworking class)

From: Drewk (Andrew_Kliman@msn.com)
Date: Wed Feb 14 2001 - 01:42:14 EST

In reply to OPE-L 4893:

Yes, Fred, you're right that our assumption that initial prices =
values, together with the assumption of simple reproduction,
implies that the prices of production change because the general
rate of profit changes, not because technology has changed.  I
hadn't put the pieces together.   My apologies.

You're not right, however, when you say that this is contrary to
Marx's theory.  As Eduardo has pointed out, and as I noted in
OPE-L 4871, Marx clearly says that production prices can change
because the general profit rate changes.  He also clearly says
that the general profit rate changes in response to changes in
*market prices*, whatever their cause.  It follows that production
prices change in response to changes in market prices.

Andrew Kliman

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