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Think of the simple formula c + v + s. The first element represents the value
that is transferred from the capital goods to the final product. It is an analog
to depreciation in conventional theory. So suppose that you start a business and
you're using a new computer. If the computer will be obsolete in a year, the
amount of value that would be transferred to the final good -- assuming that the
final good is using the socially necessary labor required for production -- would
be much higher than if the computer would be expected to last for 20 years. How
you know in advance how long the computer will be in years.
"Patrick L. Mason" wrote:
> Mike, I'm not clear on what you mean.
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail email@example.com
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