Question

What was Marx's point in his discussion of uniform rates of profit (among the sectors in an economy) but unequal organic composition of capital (among those same sectors)? Discuss.

Answer 1

Marx represents the rate of surplus value as the ratio of surplus value to the necessary labour or as the ratio of surplus value to the capital spent on labour power.

For the capitalist it is the rate of profit,which appears to be significant as it measures his gain over total capital even to exploit the labour power through expenditure on variable capital.he has to advance constant capital meant for means of production.

Marx also explains that because of the competition among capitalists there comes to prevail a general rate of profit towards which all other capitalists converge under the pressure of competition.