CAPITAL, VOLUME 1, CHAPTER 7, SECTION 2:

1. What is the fundamental assumption on which Marx's theory of surplus value is based?

2. In Marx's first example of the production of 10 lbs of cotton yarn in 6 hours:

a. What is the price of the means of production (spindle and raw cotton) utilized or consumed?

b. What is the price of labor power for a day?

c. What is the first component of the price of the yarn, which is determined by the past labor required to produce the means of production?

d. What is the second component of the price of the yarn, which is determined by the labor of the current period?

e. What is the total price of the yarn?

f. What is the amount of surplus value?

3. What are the various alternative explanations of surplus value which Marx satirizes in his
soliloquy of the capitalist on pp. 298 300 (“Our capitalist stares in astonishment ...”)?

4. In Marx's second example of the production of 20 lbs of cotton yarn in 12 hours:

a. What is the price of the means of production?

b. What is the price of labor power for a day?

c. What is the first component of the price of the yarn?

d. What is the second component of the price of the yarn?

e. What is the total price of the yarn?

f. What is the amount of surplus value?

5. What are the two determinants of the amount of surplus value produced by the average
worker per day?

6. Try to figure out an algebraic equation that expresses Marx’s theory of the price of commodities?