[OPE-L:348] Re: Chaion Lee's Short Question

Paul Cockshott (wpc@clyder.gn.apc.org)
Thu, 26 Oct 1995 14:15:12 -0700

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Once we put aside natural monopoly, non-reproducible differences in
input quality translate into different levels of average cost, so
that if price equals *average* rather than *marginal* SNLT, the
marginal firms will be continually driven out of business, as
mentioned before.
Why forced out of business?
That would only be true if the rate of surplus value was zero.
Since that is not the case, differences in costs of production
merely mean that there will be a variety of different apparent
rates of surplus value. Those producers useing excess labour do
not have all of it count as value creating and hence appear to
and I suppose in fact do, get less surplus value. But less profit
is not not the same as bankruptcy.