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> Fred does NOT say anything to the effect that this money capital
> outlay "determines" the value of the commodities in question (which I think
> is what Rakesh means by "constant capital...is determined by the cost price
> of the commodity").
Julian, just to clarify.
of course Fred does not say the outlay of money (cost
price) determines the value of commodities: c+v+s. Fred is not Ajit after
all. What he does is say that the value of the means of production (c) is
determined by the money laid out for it. Marx does assume this in the
tableaux and in Vol 1, as I pointed out in my response to Fred, but then
he does indeed note the need to drop the assumption about which Fred
has nothing to say. I have shown that if one does drop the assumption it
is reasonable to assume that the average rate of profit and production
prices calculated on the basis of the assumption would remain the same.
Now let us assume that the average rate of profit and production prices
are determined the way Marx says, then what can we predict about the
dynamics of such a system?
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