# [OPE-L:1748] temporality & simultaneity

=?EUC-KR?B?sOa/tbTrx9AgsbO89sD8u+q9xw==? (conlee@chonnam.chonnam.ac.kr)
Fri, 12 Apr 1996 08:08:42 -0700

[ show plain text ]

------ =_NextPart_000_01BB28C8.44227620
Content-Type: text/plain; charset="us-ascii"
Content-Transfer-Encoding: 7bit

------ =_NextPart_000_01BB28C8.44227620
Content-Type: text/plain; name="massimo.txt"
Content-Transfer-Encoding: quoted-printable

=B9=DE=B4=C2=C0=CC: ope-l@anthrax.ecst.csuchico.edu
=C1=A6=B8=F1: RE: [OPE-L:1737] Re: Temporality and Simultaneity

In [OPE-L:1737], Massimo wrote,

whatever is the forecast for next period, capitalist B has paid 100 for =
c, so at total market value =3D 260 the total prate for B is 80/100 =
(lower than prate for A) . NEXT period prate will be equal if B buys at =
80. To me, BOTH are real profit rate. Can you tell me why you don't =
think this is the case??

as regard to my example,=20

> 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. =20
Then, how would he compute his profit rate?
100(c)+80(v)+80(s)=3D260 is its current market value. But since 100(c) =
is already depreciated, 80(c)+80(v)+100(s) =3D260 will be seen as the =
prevailing market condition for A. 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 =
since 80(c)+80(v)+80(s)=3D240 will rather be a proper reference for it. =
Yet it is not a real profit rate, is it? =20
>=20

Chai-on Lee replies:=20
In my example, capitalist B has paid 80 (not 100) for c, so at total =
market value =3D 240 (not 260, for the market value is already =
depreciated when the second producer puts his products on the market in =
asmuch as the prevailing market value of c is 80 then) the total profit =
rate for B is 80/160 (not 80/100) (higher than the profit rate of A =
notlower than prate for A since for A, the prate is 80/180) . NEXT =
period prate will of course be equalised since B and A both would buy =
the c at 80. To me, therefore, 80/160 is the **only** economically =
relevant profit rate. Can you tell me why you don't think this is the =
case??