**From:** Fred Moseley (*fmoseley@MTHOLYOKE.EDU*)

**Date:** Sat Sep 15 2007 - 20:10:57 EDT

**Next message:**Ian Hunt: "Re: [OPE-L] models with unequal turnover periods"**Previous message:**Paul Cockshott: "Re: [OPE-L] equilibrium and simultaneous vs. sequential determination"**In reply to:**Paul Cockshott: "Re: [OPE-L] equilibrium and simultaneous vs. sequential determination"**Next in thread:**Ian Hunt: "Re: [OPE-L] equilibrium and simultaneous vs. sequential determination"**Reply:**Ian Hunt: "Re: [OPE-L] equilibrium and simultaneous vs. sequential determination"**Reply:**Paul Cockshott: "Re: [OPE-L] equilibrium and simultaneous vs. sequential determination"**Messages sorted by:**[ date ] [ thread ] [ subject ] [ author ] [ attachment ]

Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>: > Sraffa would never have made the assumption that both A and B return > a profit of $50 But if these two industries were part of a general system of equations in which the rate of profit was determined, then it would have to be assumed that these two industries have the same rate of profit, even though they have unequal turnover times, because only one rate of profit is determined for all industries. The only other option would be to assume that all turnover periods are the same, which is what Sraffa did (and the Sraffians do). Since the rate of profit is the same for all industries, and the rate of profit is equalized over the equal periods of time, all industries must be assumed to have equal turnover times. Comradely, Fred > Hi Ajit, > > What you continue to say about Ricardo and compound interest does not > answer my question about Sraffa's theory. > > Assume that $200 is invested in industry A and industry B. The $200 in > industry A is recovered in 12 months, plus a profit of $50, so that the > rate of profit for its turnover period is 25%, which is also the annual > rate of profit. > > Assume that the $200 invested in industry B is recovered in 6 months, > also with a profit of $50. So the rate of profit for its turnover > period is also 25%, but its annual rate of profit is 50% because it > turns over twice. > > Please explain how compound interest solves this problem, i.e. how it > equalizes the annual rate of profit in these two industries with > unequal turnover periods. ---------------------------------------------------------------- This message was sent using IMP, the Internet Messaging Program.

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