ECON 5080 UOU Marxian Economics Paper

Question Description

I’m working on a economics writing question and need an explanation and answer to help me learn.

Question 1: We saw the assumptions of the labor theory of value and of equal exchange are inconsistent with the achievement of equal profit rates across sectors. What was Marx’s proposed solution to this problem? What is the de- fect in Marx’s method, as described by Foley, and how did Foley correct Marx’s results? In the end, what was different than Marx’s original suggestions? What is the significance of this problem?Question 2: Foley stated that Marx argues each capitalist is, in fact, forced to innovate because the capitalists are in a prisoner’s dilemma situation with re- gard to each other. Describe the nature of this dilemma and how it leads to the falling rate of profit. What are the countertendencies to the falling rate of profit?Question 3: What does Okishio’s theorem state? Describe the “super- profit” in this framework and the role of production techniques in earning these profits. What would the implications be if we were to hold the value of the labor- power constant in Okishio’s theorem? What are the theoretical and empirical limitations of the theorem?

Explanation & Answer:
1 Pages



Marxian Economics

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