Friday, January 4, 2019

Robinsonian v Marxian exploitation

Robinson developed A model of exploitation Out of the marginal revenue Wage rate differential If an hour of labor at the external margin Adds value at the margin of MVA Then MVA minus the hourly wage rate W Determines the rate of expoitation E MVA - W = E Marxians determine exploitation as average revenue added minus the wage rate Where marginal does not equal average the two conceptions diverge