Re: [OPE-L] questions on the interpretation of labour values

From: Pen-L Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Tue Feb 27 2007 - 23:04:46 EST

Quoting Francisco Paulo Cipolla <cipolla@UFPR.BR>:

> Hi Fred, you seem not to give market price its due importance. My
> reading is that
> given social demand for a product and given total supply within a
> sector market
> prices are the result of the discrepancy between supply and demand.
> That is if
> demand is greater than supply market prices will stand above market values
> understood as average values within an industry. If on the other hand
> this market
> price yields a rate of profit above average for the most competitive
> techniques
> then supply expands through these techniques and market prices are
> brought down.
> How can Max have deemphasized market prices given that they are the
> pivot of the
> whole process?

Hi Paolo,

I don't understand.  It seems to me that what you say is that the
average market prices (i.e. prices of production) are the pivot around
which market prices fluctuate.  What do you say that the market prices
are the pivot.
Market prices are accidental, temporary prices, which depend on supply
and demand.  Prices of production are determined by systematic forces.


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