Re: [OPE-L] basics vs. non-basics

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Wed Oct 05 2005 - 14:33:51 EDT

--- Ian Wright <wrighti@ACM.ORG> wrote:

> Hi Ajit
> > The bean example only shows a logical case where
> it is
> > imposible to maintain equal prices and equal rate
> of
> > profits accross sectors. It also points to the
> fact
> > that Sraffa is following Adam Smith in maintaining
> > equal rate of profits as a mark up on costs for
> quoted
> > supply prices. In this case, the producers of
> beans
> > could still qoute a price by marking up the costs
> by
> > the normal rate of profit, by adjusting the price
> of
> > the beans on the cost side. Chers, ajit sinha
> Are you saying that in this case input prices do not
> equal output prices?
> -Ian.
The bean producers do not have to buy the beans in the
market. They simply use the beans they have produced
as inputs. So the cost of beans is always based on
imputed price of beans for the bean producers. In this
case they impute a price of beans that are different
from the price of beans they sell it in the market.
ajit sinha

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