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Total surplus-value in an economy (Marx refers to the mass or volume of surplus-value) is basically equal to the sum of net distributed and undistributed profit, net interest, net rents, net tax on production and various net receipts associated with royalties, licensing, leasing, certain honorariums etc. (see also value product).
The implication is that if the gross profit volume was related to wage costs to establish the rate of surplus value, this might overstate or understate the real rate of labor-exploitation. Although this is a subtle point, it has sometimes played an important role in wage bargaining negotiations by trade unions .
Also called economic surplus. [ 168 ] A situation in which the quantity of a good or service supplied is more than the quantity demanded, [ 169 ] and the price is above the equilibrium level determined by supply and demand ; that is, the quantity of the product that producers wish to sell exceeds the quantity that potential buyers are willing ...
Volume of sales, therefore, is 300 €. From volume of sales costs of the year must be deducted. Costs of circulating capital are expenses for “production material” and for labour power, both of them are consumed in production during the year (that is the definition of “circulating capital”):
A measuring unit of value can exist only as a theoretical entity (or as an ideal price comparable to an empirical price) which is also exactly how Marx used it in his simplified illustrations of value relationships. He simply uses a number for the value-quantity and another number for the price-quantity, to indicate a proportion.
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The consumer's surplus is highest at the largest number of units for which, even for the last unit, the maximum willingness to pay is not below the market price. Consumer surplus can be used as a measurement of social welfare, shown by Robert Willig. [ 8 ]
The amount it adds depends on the duration, intensity, productivity and skill of the labor-power purchased: in this sense, the buyer of labor-power has purchased a commodity of variable use. Finally, the value added during the portion of the period when surplus labor is performed is called surplus value (). From the variables defined above, we ...