Facts and Logic
The concept of "average profit" (a general profit rate) suggested that a process of competition and market-balancing had already established a uniform (or ruling average, or normal) profit rate previously; yet, paradoxically, what profit volumes would be (and consequently profit rates) could be established only after sales, by deducting costs from gross revenues. An output was produced before it was definitively valued in markets, yet the quantity of value produced affected the total price for which it was sold, and there was a sort of "working knowledge" of normal returns on capital. This was a dynamic business reality Marx sought to model in a simple way.
Read more about this topic: Prices Of Production
Famous quotes containing the words facts and/or logic:
“A judge is not supposed to know anything about the facts of life until they have been presented in evidence and explained to him at least three times.”
—Parker, Lord Chief Justice (1900–1972)
“The much vaunted male logic isn’t logical, because they display prejudices—against half the human race—that are considered prejudices according to any dictionary definition.”
—Eva Figes (b. 1932)