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

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Fri Oct 07 2005 - 05:04:07 EDT

```--- Paul Cockshott <wpc@DCS.GLA.AC.UK> wrote:

> Ajit
> _____________
> May be I don't understand your point. But I don't
> see
> any problem here. All other inputs are bought in the
> market by the bean producr and so there is no
> question
> of imputation here. They cost what they cost. If
> those
> producers have used beans in their production, they
> measured its cost by the price they paid for it.
> What
> is the problem here? I don't see any problem here.
> In
> any case, remember that the bean problem arise
> because
> the proportion of beans as inputs in the production
> of
> beans is unusually high. Let say, if the normal rate
> of profits is 10%, then if it takes 100 units of
> beans
> as input to produce 110 units of beans, then you get
> into the bean problem. Cheers, ajit sinha
>
>
> -----------
> I think the issue is that there might be
> an indirect feedback relationship here.
> Suppose commodity A is non basic.
> It uses commodity B in its input but B is also
> non basic, and B uses commodity A in its own
> production
>
> In this case B has to purchase A at real not imputed
> cost
___________________
But how cn it create any peoblem. The bean problem
arises because physically it takes 100 units of bean
to produce 110 units of beans, thus the sector cannot
physically generate a rate of profit higher than 10%.
Let us suppose thatt that was not the case. The bean
sector was using only 10 units of bean to produce 110
units of bean but one one unit of horse that was
produced by using 90 units of beans. Will this create
any problem for the bean sector? Not at all. The bean
sector can have a normal rate of profits even if it
was 15%, in this case. The problem here is due to
physical surplus and not due to prices. Cheers ajit
sinha
>
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