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The authors argue that, according to Marx, the value of a commodity indicates the abstract labor time required for its production; however Marxists have been unable to identify a way to measure a unit (elementary particle) of abstract labor (indeed the authors argue that most have given up and little progress has been made beyond Marx's ...
Empirically, one can only get as far as establishing a "grand average" for the price of an hour of work (this is often referred to in Marxian economics as the "monetary equivalent of labour time", or MELT) and one can discuss the extent to which labour is undervalued or overvalued in a relative (comparative) sense. [123]
Econodynamics demonstrates, and this is an achievement of V.N. Pokrovskii, that the observed substitution of labour be capital is, in fact, the substitution of labour by work of external energy sources, and the statement about the productive power of capital is a hoax that hides the real role of labor and energy in the production of value.
It is the change in output from increasing the number of workers used by one person, or by adding one more machine to the production process in the short run. The law of diminishing marginal returns points out that as more units of a variable input are added to fixed amounts of land and capital, the change in total output would rise firstly and ...
A firm's labour demand is based on its marginal physical product of labour (MPP L). This is defined as the additional output (or physical product) that results from an increase of one unit of labour (or from an infinitesimal increase in labour). (See also Production theory basics.)
Instead, the value of equipment and materials being used in production is conserved and transferred to the new product by living labor. For example, if a machine that is used to make cars costs $1 million and it is used to make 10,000 cars before it is worn out and replaced, then each car would have $100 worth of that machine in it (constant ...
A fixed cost is one that is not based on how much of a good or service a business produces. It’s sometimes referred to as an indirect cost, or “overhead.” It’s sometimes referred to as an ...
Generally Marx assumed that—irrespective of the price for which it is sold—skilled labour power had a higher value (it costs more to produce, in money, time, energy and resources), and that skilled work could produce a product with a higher value in the same amount of time, compared to unskilled labour. [27]