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[11] Diesel: Marx writes concerning the price of commodities and and states that
“proportions change with time and place dependent on the circumstances of the
exchange.” Also, “exchange values of a commodity are determined by the extraneous
circumstances of the exchange.” David Ricardo explains best the term rent. If
landlord A produces at 1/2 the cost of landlord B, then landlord A has 1/2 rent
on landlord B. The valid exchange values of a commodity cannot be set because
the economy is not a fixed environment. If a “landlord” owns more fertile land
in agricultural terms then his cost of production is lowered, meaning he can
decrease the prices of his goods. The term valid I believe is used as the most
up to date cost of a commodity so as to increase capital. |
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