Let us assume that a capitalist employs a worker for the production of bags for ladies. Production of one bag requires 12 hours of direct labor. Capitalist provides tools for production of bags. The direct labor content (equivalent) of these tools to produce one bag is 20 hours. Let us also assume that one hour of direct labor in that country is worth one schilling ( schilling is the national money of that country) Given these a) What will be the value of one bag (in schillings) in that country? b) What is the justified share (in schillings) of the capitalist (according to Marx) from the sale of one bag. c) If capitalist pays only 0.5 schillings per hour to the worker; what will be the surplus value and the capitalist for one bag?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Let us assume that a capitalist employs a worker for the production of bags for ladies. Production of one bag requires 12
hours of direct labor. Capitalist provides tools for production of bags. The direct labor content (equivalent) of these tools
to produce one bag is 20 hours. Let us also assume that one hour of direct labor in that country is worth one schilling (
schilling is the national money of that country) Given these a) What will be the value of one bag (in schillings) in that
country? b) What is the justified share (in schillings) of the capitalist (according to Marx) from the sale of one bag. c) If
capitalist pays only 0.5 schillings per hour to the worker; what will be the surplus value and the capitalist for one bag?
Transcribed Image Text:Let us assume that a capitalist employs a worker for the production of bags for ladies. Production of one bag requires 12 hours of direct labor. Capitalist provides tools for production of bags. The direct labor content (equivalent) of these tools to produce one bag is 20 hours. Let us also assume that one hour of direct labor in that country is worth one schilling ( schilling is the national money of that country) Given these a) What will be the value of one bag (in schillings) in that country? b) What is the justified share (in schillings) of the capitalist (according to Marx) from the sale of one bag. c) If capitalist pays only 0.5 schillings per hour to the worker; what will be the surplus value and the capitalist for one bag?
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Pricing in Input Markets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education