Working Paper Number

2018-09

Journal or Book Title

UMass Amherst Economics Working Papers

Publication Date

2018

Abstract

In a recent paper, I had proposed an analytical framework to understand Marx’s theory of ground-rent. An important question had been left unaddressed in the paper: how are the price and output levels (of the agricultural commodity) determined in a way that can both take account of fluctuations in market demand and also embed profit-maximizing behaviour of the capitalist-farmers? In this note, I offer a simple way to think about the determination of equilibrium levels of price and output for the agricultural commodity that makes explicit two important dimensions: (a) the role of aggregate demand for the agricultural commodity, and (b) profit maximizing behaviour of the capitalist farmers.

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UMass Amherst Open Access Policy

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Economics Commons

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