Tuesday, November 29, 2016

Maximizing -- at the out put unit level/- Surplus labor time v minimizing total labor Time

Total LT added per unit  here is of course singular
Ie firm specific

(Simple Abstract Socially Necessary Labor  Time  )
is a post facto construct
taking all like concrete labor times together and dividing by revenue from sale of output
The calculation
leaves a historic unit labor cost for a given task set at each stage of value added in production

The market price determines the specific pattern of firm black and red ink

But the  actual firm by firm  concrete labor times dispersion of the actual output total is by definition social necessary whether the specific LT is above or blow the particular average

You could define a firm using a easily expanded new process as determining the social necessary labor time and show a prospective potential increase in surplus labor time
If market price remained un changed even as all firms moved to the new process