Production of Value

Abstract

In this chapter, the relationship between the production of value and the original (primary) sources of value, the production factors, is considered. From the input–output relations (Chap. 4), an increase in production of value is connected with an increase in production equipment (capital stock), and the capital stock is conventionally considered a production factor. On the other hand, production of value can be associated with an increase in technological work, that is, an increase in the efforts of labourers and the work of production equipment (Chap. 1). In all, we have three production factors to consider: machine work and labour inputs act as substitutes for each other, but capital stock and the total technological work are complements to each other. An approximation of the production function allows us to find explicit forms of marginal productivities which are connected with each other. The roles of production factors are different: labour and substitutive work are the true sources of value. Capital stock presents the means by which the labour and energy resources are attracted to the production, allowing workers’ efforts to be substituted by a machine’s work.KeywordsProduction FunctionLabour ProductivityCapital StockProduction FactorMarginal ProductivityThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.