| This question <555|555> overall <551|553> Clay: <358|562-7>. graded C |
| Exam Question 529: What is relative surplus-value? Which mechanisms, that were so far taken as given, affect the magnitude of relative surplus-value? |
| [552] Clay: Relative surplus value is the additional value a capitalist creates when new technology is used in the production process. This additional value is only realized for a short period of time because as other producers discover this new technological application they will implement it. Once the new technology becomes common among producers competition will drive down the price of that commodity and the relative surplus value will disappear for every capitalist. Relative surplus value can be derived from direct increase in productivity of the product or an increase in the productivity of the raw materials. The main mechanism the was taken as given was technological change. Throughout the class we have learned that technology is identical throughout a sector but now we learn that additional value can be gleaned if capitalists take advantage of new technology to increase production. |
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