This question <561-1|563-8> overall <561-5|562> Yenom: <532|563-2>. graded A–

Question 590: Do the workers after introduction of new machinery produce more value per hour?

[561-6] Yenom: After the introduction of new machinery into an industry the workers produce the same amount of individual value but they produce more social value. Social value is the necessary labor required on average socially, so an innovator can create extra surplus value in the short run by being the first with a new effective production technology. But these surplus profits are temporary; the capitalist must lower the price he charges in order to create demand for the larger amount of product that is produced. By doing so he forces his competing capitalists to adopt his new technology or be ruined. This in turn brings down the social value per piece until the value per hour created before the introduction is equivalent to the social value produced per hour.

Hans: Your last sentence seems mis-formulated; your in-class answer says “until the value per hour is returned to its start,” this is more correct.

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