By Ernest & Alan Freeman Eds Mandel

ISBN-10: 0805272151

ISBN-13: 9780805272154

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Extra resources for Ricardo, Marx, Sraffa: The Langston Memorial Volume

Example text

If th e v ec to r of c o m m o d itie s (x1 ; . , xn) ex changes for th e vecto r (xl 5 . , xn) we shall d e n o te this by th e exchange relation ( x j x n) <-> ( X j , . x„). (2 ) O u r task is to u n d e rs ta n d th e fo rm a tio n of prices, o r ‘v alues’ fro m these relatio n s of ex change o r prim itiv e jo in t p r o d u c tio n T heoretically , th e re is n o difference b etw een th e tw o so we shall deal here only w ith exchange, keeping in m in d th a t it applies equally well to jo in t p ro d u c tio n .

T h u s the tab le c o n ta in s c o n tra d ic to ry in fo rm a tio n a b o u t exchange, as in d icated in the brackets. C learly we c a n n o t sim ply c o m p u te values o n the basis of this ex change ta b le even th o u g h each relation involves only o ne c o m m o d ity o n each side. If th e ab o v e d a t a ( E l5 E 2) were to co rrespond to reality, we would have to say th a t on average one unit of o u r first com m odity exchanges for x units of the second, w here 1 ^ x ^ 2 , a n d th e size of x d e p e n d s o n the ac tu a l v o lu m e of tra n sa c tio n s p erfo rm ed in E!

B u t w aste sm o k e as a n ex a m p le o f a zerop riced c o m m o d ity h as n o relatio n to a n y d efinition of von N e u m a n n ’s. F o r v o n N e u m a n n , if th e c o n s u m p tio n o f cru d e oil, c a rs o r b u tte r is lo w er by as little as, say, 0 . 0 0 1 p e r cen t th a n th e ir p r o d u c tio n th en th e ir prices m u st d r o p to zero.

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Ricardo, Marx, Sraffa: The Langston Memorial Volume by Ernest & Alan Freeman Eds Mandel


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