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Prices of production : ウィキペディア英語版
Prices of production

Prices of production is a concept in Karl Marx's critique of political economy, defined as "cost-price + average profit". It refers to the price levels at which newly produced goods and services would have to be sold by the producers, in order to reach the normal, average profit rate on the capital invested in producing them. The importance of those prices is that a lot of other prices are based on, or derived from them: they determine the cost structure of capitalist production. A production price for outputs in Marx's sense always has two main components: the ''cost-price'' of producing the outputs (including the costs of materials, equipment, operating expenses, and labour) and a ''gross profit margin'' (the additional value realized in excess of the cost-price, when goods are sold, which Marx calls surplus value). Marx's argument is that price-levels for products are determined by input cost-prices, turnovers and average profit rates on output, which are in turn determined principally by aggregate labour-costs, the rate of surplus value and the growth rate of final demand. The suggestion is that differences in profit rates among producers will tend to level out as a result of business competition, so that a general norm emerges for the profitability of industries.
==Sources and context==

The concept of production prices is introduced in the third volume of ''Das Kapital'', although it is referred to in the earlier volumes. In the third volume, Marx considers the operation of capitalist production as the unity of a ''production'' process and a ''circulation'' process involving commodities, money, and capital. Capitalist production cannot exist without markets, and therefore it is a type of production that fully depends on market trade. For the purpose of the analysis of the internal structure of the capitalist workplace, which is the main subject of ''Capital, Volume I'', market fluctuations are initially mostly disregarded - but that gives only one half of the story. The products have to be sold at a profit, and purchased at a competitive price, through market trade and the circulation of capital. The argument in ''Capital, Volume III'' is that the sales of newly produced commodities in the capitalist mode of production are ''regulated'' by their production prices.〔Howard Nicholas, ''Marx's theory of price and its modern rivals''. London: Palgrave Macmillan, 2011.〕
A lot of the controversy about Marx's concept of production prices is probably caused by the fact that Marx never finalized the text of the third volume of ''Capital'' for publication. The book was edited together posthumously by Engels, who tried to make a polished story out of a mass of draft manuscripts Marx left behind. Marx sketched complicated issues in a shorthand way which is sometimes ambiguous and incomplete, and does not make all the implications explicit. According to the German Marxian scholar Michael Heinrich, "Marx was nowhere near solving all of the conceptual problems".〔Michael Heinrich, "Engels’ Edition of the Third Volume of Capital and Marx’s Original Manuscript". ''Science & Society'', Vol. 60. No. 4, Winter 1996-1997, pp. 452-466.()〕 However, Marx's concept is also frequently confused with similar concepts in other economic theories.
For most economists, the concept of production prices corresponds roughly to Adam Smith's concept of "natural prices" and the modern neoclassical concept of long-term competitive equilibrium prices under constant returns to scale.〔For an historical discussion, see Ronald L. Meek, ''Studies in the labour theory of value''. New York: Monthly Review Press, 1975.〕 However, the function of prices of production within Marx's theory differs from both classical political economy and neoclassical economics.

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