# [OPE-L:1654] Re: Temporality and Simultaneity

chaion lee (conlee@chonnam.chonnam.ac.kr)
Sun, 31 Mar 1996 19:51:04 -0800

[ show plain text ]

Dear Massimo,
In the example of the two producers, I assumed the value of input materials
to be changing. If the production conditions (the machinarys, etc.) are
changing in their values, the less competitive producer should be weeded out.
Because the input materials are assumed to change in their values, he was
less competitive temporarily. let us discuss this case only in the first instance.
let assume the producer A purchased the input materials at 100 while his
competitor did them of the same amount at 80 at a later point of time for
the reason that the input materials were devalued (the two values, 100 and
80, were assumed to have been prevalent market values). The second producer
has not yet come out to the market when the first man put his products on
the market. But, when his products are on the market, the input materials
are already known to have been devalued. Nevertheless, because the second
man has not produced the same product with less expensive input materials,
the market value of the products are not yet depreciated in proportion to
the value of the input materials. Then, how would he compute his profit rate?
100(c)+80(v)+80(s)=260 is its current market value. But since 100(c) is
already depreciated, 80(c)+80(v)+100(s)=260 will be seen as the prevailing
market condition. In the first case, the profit rate would be 80/180. But
in the second case, it would be 100/160. None of the two can be a proper
profit rate in projecting the next production. 80(c)+80(v)+80(s)=240 will
rather be a proper reference for it. Yet it is not a real profit rate,
is it?