RE: [OPE] intermission

From: Paul Cockshott <>
Date: Fri Nov 06 2009 - 04:38:09 EST

This is the law of value asserting itself as an average
From: [] On Behalf Of Gerald Levy []
Sent: Thursday, November 05, 2009 4:15 PM
To: Outline on Political Economy mailing list
Subject: Re: [OPE] intermission

>I was talking about R&D labour.

Hi Paul C:

Well, for a corporation which sells many different types of commodities (as
the case with pharmeceutical corporations), the companies can charge a price
for their commodities which reflects (among other things) not the cost of
R&D for
any one commodity but the cost for all R&D. That's is, they can re-coup the
costs by increasing the prices of all goods which they sell. Non-production
labor costs
can be added on to the price as well - as Jurriaan noted with his reference
to the
personal care products industry.

Large corporations, of course, will attempt to estimate R&D costs well in
as this is a major budget item and has to be planned. Generally speaking,
funding for R&D staff and material expenses are internally generated. It's
risky business, though. In a way, it's sort of a routinized form of

In solidarity, Jerry

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Received on Fri Nov 6 04:40:00 2009

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