| This question <724|685> overall <683|685> Jeff: <671|107>. |
| Question 736: Describe the mechanisms of repulsion and attraction of individual capitals in the course of accumulation. |
| [684] Jeff: According to Marx, during the course of accumulation, two things occur: repulsion and then attraction. During the first step, repulsion, competition occurs between small firms in the market that are providing the same products and/or services. This occurs if the demand for a certain product increases and then firms all begin to produce that demanded commodity in order to make a profit. This causes repulsion. |
| In the next stage as Marx describes it, attraction between the competitors in the market occurs. Capitalists find that it may be more profitable for them if they were to put together all the small firms into one large manufacturing firm. This attraction leads to the creation of a large firm with economies of scale which will lead to the accumulation of more capital. Thus, the capitalist finds it better for his firm to operate in this manner. |
| Hans: Competition is not a mechanism of repulsion but of attraction, because the larger capitals usually win, and the losers in competition are often gobbled up by the winners. |
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