**Next message:**Rakesh Narpat Bhandari: "[OPE-L:5340] Re: Re: Re: Re: Re: double divergence"**Previous message:**Rakesh Narpat Bhandari: "[OPE-L:5338] Re: Re: Re: double divergence"**In reply to:**Rakesh Narpat Bhandari: "[OPE-L:5338] Re: Re: Re: double divergence"**Next in thread:**Rakesh Narpat Bhandari: "[OPE-L:5340] Re: Re: Re: Re: Re: double divergence"**Reply:**Rakesh Narpat Bhandari: "[OPE-L:5340] Re: Re: Re: Re: Re: double divergence"**Messages sorted by:**[ date ] [ thread ] [ subject ] [ author ]

On Sat, 7 Apr 2001, Rakesh Narpat Bhandari wrote: > Fred, I argue that K is the same for both equations only when Marx is > expressing the value and price of production for either total capital > or the synechdocal average commodity. Rakesh, this is simply not true. Don't you remember this paragraph from Chapter 9 of Vol. 3 (p. 263), that we have discussed before, in which Marx clearly states, including again in algebraic terms, that K is the same for both value and price of production of ALL types of commodities? "If we take it that the composition of the average social capital is 80c + 20v, and the annual rate of surplus-value s' = 100 per cent, the average annual profit for a capital of 100 is 20 and the average annual rate of profit is 20 per cent. For any cost price K of the commodities annually produced by a capital of 100, their price of production will be K + 20. In those spheres of production where the composition of capital is (80-x)c + (20+x)v, the surplus-value actually created within this sphere, or the annual profit produced, is 20+x, i.e. more than 20, and the commodity value produced is K + 20 + x, more than K + 20, or more than the price of production. In those spheres of production where the composition of capital is (80+x)c + (20-x)v, the surplus-value or profit annually created is 20-x, i.e. less than 20, and the commodity value therefore is K + 20 - x, more than K + 20, or more than the price of production. Leaving aside any variation in turnover times, the production prices of commodities would be equal to their values only in cases where the composition of capital was by chance precisely 80c+ 20v." And don't you remember Alejandro's "missing paragraph" which is just before the paragraph just quoted in Marx's manuscript, and in which Marx says again that K is the same in the equations for both the value and the price of production of all commodities, again in algebraic terms? "The cost price is, as we see, always smaller than the value of the commodity. The price of production can be smaller, bigger, or equal to the value of the commodity. The value of the commodity = the value of the capital consumed in the production of the commodity plus the surplus-value. If we take, as in the original development of the cost price (Chapter 1), cost price = value of the capital advanced in the production of the commodities, we have the following equations: value = cost price + surplus-value V = K + s or profit as identical with surplus-value or = K + p cost price = value - surplus-value or K = V - s price of production = cost price + profit P = K + p' calculated according to the general rate of profit = p'. Because K = V - s and V = K + s, the value of the commodity is always > than the cost price. Depending on whether s or p' of each special production sphere is bigger or smaller or equal, > < or = to the average profit determined by the general rate of profit, then P > < or = V. Because V = K + s or p, and P = K = p', V = P when s = p', > P when p' < s, and < P when p' > s." It seems beyond dispute that Marx is saying in these passages that K IS THE SAME for both values and prices or production of ALL commodities, not just for the total commodity product or average commodities. As we have discussed, if K is the same for all commodities, then there can only be "one reason for divergence" between the value and price of production of all commodities. Rakesh, your statement quoted at the top surprised me in another way. I thought you have argued before that, even for the total commodity product, K DOES CHANGE (i.e. that C and V change) in the transformation of value into price of production. Since you also argue that the price of production of the total commodity product is equal to its value, you concluded that the TOTAL SURPLUS-VALUE WILL ALSO CHANGE, inversely to the change of K, right? If you are now saying that K is the same (i.e. K does NOT change) for the total commodity product, then you must also agree that the total surplus-value also does NOT change in the transformation of value into price of production, right? Indeed, I realized on rereading your earlier (3525) that you explicitly stated just that. You said: "The difference between total value, as monetarily expressed, and cost price is the mass of surplus-value which then determines the sum of profits; in other words, S AND P ARE EQUAL IN THE AGGREGATE." (emphasis added) But, Rakesh, this is the main point I have been trying to make all along! I am very glad that we now seem to agree on this important point. So what are we arguing about? I look forward very much to further discussion. Comradely, Fred

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