Question

How does Karl Marx’s theory of value differ from David Ricardo’s theory of value?

Answer 1

Classical economist David Ricardo was of the view that the value of the good is proportional to the amount of labor required to produce it .It also takes into consideration the labor needed to produce the raw material .and machinery which may be used in the process.Karl Marx worked within the framework of Ricardo's labor theory of value .The main differences were -Marx   emphasised on fixed capital and he used the labor theory of value so that the source of profit can be identified. Marx used the labor theory of value to show the path of capitalism which was different from Ricardo.This path was not considered by Ricardo .