Which one of the following ratios represents rate of profit in the Marxian Theory of Distribution ?
The Marxian profit rate is surplus value divided by the total advanced capital: r = S/(C + V). C/V is the organic composition of capital, C/(C+V) the constant-capital share,…
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Which one of the following ratios represents rate of profit in the Marxian Theory of Distribution ?
Answer and explanation
Correct answer D
The Marxian profit rate is surplus value divided by the total advanced capital: r = S/(C + V). C/V is the organic composition of capital, C/(C+V) the constant-capital share, and S/V the rate of surplus value rather than the profit rate.
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UGC NET Economics