[OPE-L:1304] Re: A Problem w. Transformation

akliman@acl.nyit.edu (akliman@acl.nyit.edu)
Mon, 4 Mar 1996 11:40:41 -0800

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a response to John E's ope-l 1300:

I think John has raised an important point concerning the exclusion of
monopolies from equalization of the profit rate. GIVEN THAT the mass of
profit is exogneous to the determination of output prices, the point
creates no special problems. if the totaal social capital and surplus
value are K and S, respectively, and if a monopoly has an investment
of Km and receives a profit of Sm, then, for the remaining capitals
included in the equalization of the profit rate, the profit to be
distributed is S - Sm and the equalized profit rate is

(S - Sm)/(K - Km).

The only problem is that there's only ONE interpretation of the
transformation that makes the determination of the mass of profit
exogenous and (temporally) prior to the pricing of outputs and allocation
of profit. Yes, the TSS interpretation. The others are in trouble again,
for the reason John indicates. The problem again is, yes, simultaneism.

Andrew Kliman