The relationship between the change in the rate of value of profits and the organic composition of c

Organic composition of capital: refers to the composition of capital value determined by the technical composition of capital and reflecting the changes in technical composition.

In order to study in depth the influence of capital accumulation on the development of capitalism, Marx creatively proposed the category of organic composition of capital. The composition of capital can be examined from two aspects: material form and value form. In terms of material form, capital is composed of a certain amount of means of production and labor, and the proportion of the two is determined by the technical level of production.

This ratio of quantity between the means of production and labor, determined by the level of production technology, is called the technical composition of capital. On the other hand, from the perspective of the form of value, capital is composed of a certain amount of constant capital and variable capital, and the ratio between constant capital and variable capital is called the value composition of capital. There is an intrinsic organic relationship between the technical composition of capital and the value composition, and under normal circumstances, the change of the technical composition of capital will cause the change of the value composition, and the change of the value composition of capital generally reflects the change of the technological composition.

Marx called the value composition of capital, which is determined by the technical composition of capital and reflects the changes in the technical composition of capital, as the organic composition of capital, which is usually expressed by c:v. With the development of capitalism, the organic composition of capital has a tendency to increase, which is manifested in the increase in the proportion of constant capital in all capital and the decrease in the proportion of variable capital.

Between various sectors of society (note that this refers to different industries), the departments with high organic composition, when c improves, technology improves, and production efficiency increases; When v decreases, there are fewer hired workers and less wage expenditure, so the average profit obtained by the department with high organic composition is greater than the actual surplus value produced by the sector, and within the department (note that this refers to different enterprises in the same industry), the same surplus value rate means that v (surplus value is created by v) is the same, at this time, the organic composition is high, which means that the cost of fixed assets is higher, that is, you get the same surplus value as others, and you invest more than others, Of course, the profit margin is lower than others!

In this way, an increase in the organic composition means a decrease in the proportion of variable capital, that is, a decrease in the proportion of the part of surplus value that can be exploited, so that the profits of the enterprise are less.

Residual value rate m'=m/v;Profit margin p'=m/（c+v）；Organic composition = c v

For example, there is a company in the first year m'=, there is a body to become 1, then p'=;The second year m'unchanged, the organic composition is elevated to, then p'=, the profit margin is negatively correlated with the change in organic composition;

Hello dear, according to the inquiry, the increase in the organic composition of capital will reduce the rate of profit for the following reasons: because it is not the organic composition of capital that really determines the average profit, but the proportion of variable capital. The value composition of capital, which is determined by the technical composition of capital and reflects changes in the technological composition, is called the organic composition of capital, and is usually used as c:

v indicated. In the process of capital accumulation, with the development of capitalism and the continuous progress of production technology, the organic composition of capital has a tendency to increase. An increase in the organic composition of capital means that the proportion of constant capital in the total capital is increasing, while the proportion of variable capital is decreasing relatively, and the rate of profit, that is, the ratio of surplus value to total capital, is decreasing.

When the proportion of variable capital in the total capital of society is decreasing, the demand of capital for labor is increasingly decreasing relatively, sometimes even absolutely, and this results in a relative surplus population. Profit margins are also declining.

Because capital is organically constituted.

raised, constant capital.

The increase in the proportion of fixed capital has led to an increase in the proportion of fixed capital in constant capital. Since the turnover of fixed capital is much slower than that of circulating capital, an increase in the proportion of fixed capital slows down the turnover of all prepaid capital, resulting in an average rate of return.

of the decline. With the development of the capitalist economy, the emergence of large-scale machine industry, the progress of science and technology, and the growth of capital accumulation, the organic composition of capital has a tendency to continue to increase.

1 If the increase in the organic composition of capital is due to the improvement of technology, which leads to a decrease in variable capital (the increase in technology leads to an increase in productivity, the capital used to purchase labor is reduced in variable capital), while the amount of surplus value remains unchanged - the rate of surplus value increases. At the same time, the capital cycle cycle is shortened, and the annual surplus value increases;

2 If the increase in the organic composition of capital is due to an increase in the input of the means of production (production is accomplished by the extension of labour time, i.e., an increase in the quantity of absolute surplus value), the increase in constant capital and variable capital remain unchanged. The rate of surplus value increases, and the amount of annual surplus value increases.

To sum up, the organic composition of capital increases--- the rate of surplus value increases--- the amount of surplus value increases.

What is the positive and inverse relationship between the organic composition of capital, the rate of profit, and the rate of surplus value?

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Hello, yes.

Why is the organic composition of capital inversely proportional to the rate of profit, the organic composition of capital proportional to the rate of surplus value, and the rate of profit proportional to the rate of surplus value? Which one in the middle is wrong?

The organic composition of capital represents the ratio of constant capital and variable capital, when the technology is improved, the constant capital becomes larger, the variable capital becomes less, the production efficiency increases, the output increases, the supply increases, the profit margin decreases, the sales become more, and the total profit becomes larger. Hope it works for you, thank you!

What about the relationship between the organic composition of capital and the rate of surplus value?

1 If the increase in the organic composition of capital is due to the improvement of technology, which leads to a decrease in variable capital (the increase in technology leads to an increase in productivity, the capital used to purchase labor is reduced in variable capital), while the amount of surplus value remains unchanged - the rate of surplus value increases. At the same time, the capital cycle cycle is shortened, and the annual surplus value increases;

2 If the increase in the organic composition of capital is due to an increase in the input of the means of production (production is accomplished by the extension of labour time, i.e., an increase in the quantity of absolute surplus value), the increase in constant capital and variable capital remain unchanged. The rate of surplus value increases, and the amount of annual surplus value increases.

To sum up, the organic composition of capital increases--- the rate of surplus value increases--- the amount of surplus value increases.

What is the relationship between the rate of profit and the rate of surplus value? Thank you!

The rate of profit is the transformed form of the rate of surplus value, and in the case that the amount of capital in advance has been determined, the size of the rate of profit is directly proportional to the amount of surplus value, and the larger the amount of surplus value, the higher the rate of profit, and the amount of surplus value is determined by the rate of surplus value, therefore, the size of the rate of profit depends first of all on the level of the rate of surplus value, that is, the degree of exploitation of the workers by the capitalists.

1) The organic composition of capital refers to the composition of capital value determined by the technical composition of capital and reflects the change of the technical composition of capital, which can be expressed by the formula C:V. The rate of surplus value is the ratio of surplus value to variable capital. The formula is: m'=m/v

2) Due to the intrinsic motivation of capital to pursue excess surplus value and the external pressure of competition, capitalists will inevitably continue to improve their technical equipment and improve the technical composition of capital, so that the organic composition of capital has a tendency to gradually increase.

3) The rate of profit changes in proportion to the rate of surplus value. The factors that affect the rate of surplus value are: increasing labor intensity, extending the working day, and depressing workers' wages, etc., which are also factors that affect the rate of profit.

The rate of profit changes in the opposite direction to the organic composition of capital. When the amount of variable capital and the rate of surplus value are constant, the higher the organic composition of capital, the lower the rate of profit; The opposite is true.

The technical composition of capital determines the value composition of capital and is expressed through the value composition. In order to show the relationship between them, Marx called this composition of the value of capital, which is determined by the technical composition of capital and can reflect the changes in the technical composition, the organic composition of capital, and its formula is C (constant capital): V (variable capital).

The organic composition of capital is embodied in the ratio of constant capital to variable capital.

Because: profit margin calculation formula: profit margin (cost profit margin) = profit cost 100% sales profit margin calculation formula: sales profit margin = total profit of main business operating income 100%.

The rate of profit is the transformed form of the rate of surplus value, and is another rate calculated by different methods for the same amount of surplus value. If p is the rate of profit and c is the total capital prepaid (c+v), then the rate of profit p = m c = m (c + v).

The profit margin reflects the relative index of the profit level of an enterprise in a certain period. The profit margin index can not only assess the completion of the profit plan of the enterprise, but also compare the operation and management level of various enterprises and different periods, so as to improve economic efficiency. Cost Margin = Profit Cost 100%, Sales Margin = Profit Sales 100%.

At the same rate of surplus value, the higher the organic composition of capital, the higher the capital investment, which means that a lot of capital is invested in production equipment, technology and other fixed assets, while the proportion of labor is relatively low. At this time, in order to ensure new circulating capital and higher profit margins, enterprises need to reduce goods** and increase product output and sales.

When enterprises increase production efficiency and reduce production costs by increasing the organic composition of capital, the socially necessary labor time will be reduced as productivity increases. Therefore, in order to obtain the same surplus value, more surplus value must be created to compensate for the reduction of the worker's surplus labor time. At the same time, due to the improvement of the technical level, it may also lead to more fierce market competition, resulting in a further decline in product quality.

Taken together, in the case of an increase in the organic composition of capital, even if the rate of surplus value remains the same, the share of enterprises in total capital may decline, because higher production costs must be paid in order to produce the same quantity of products and obtain the same profits. This leads to lower profit margins. Because of this, although the improvement of the organic composition of capital can improve production efficiency and product quality, it is not always a good choice for the profit of the enterprise.

The influence of capital composition on the relationship between surplus value and average profit, and the impact on the relationship between commodity value and production.

First, from the perspective of individual branches of production, the average profits obtained by capitalists may be higher or lower than the surplus value created by the workers in their own sectors. But from the point of view of the whole society, the average total profit obtained by the capitalist class as a whole is the second to the surplus value created by the working class as a whole, and from the point of view of individual sectors, production ** is not consistent with the value of commodities. However, from the point of view of the whole society, since the average total profit is equal to the total surplus value, the total amount of production must be equal to the total value of the commodity.

Third, the change of production depends on the change of value in the final analysis.