Marx's Equalisation of Profit Rate

Adjust industries below to see how competition equalises profit rates and transforms values into prices of production.

⚙️ Global Settings

❓ What is rate of exploitation? Ratio of surplus value to variable capital (s/v).
E.g., 1.0 = workers produce value equal to twice their wage.
s = v × rate of exploitation

🌍 Economy-Wide Average Rate of Profit: --%

📈 Results Table

💡 Key Marxian Insights

Surplus value is created only by labor (variable capital v).
Initial profit rates vary by industry depending on c/v (organic composition).
Capital flows to high-profit sectors → supply ↑ → prices ↓ → profit rate ↓.
Eventually, profit rates equalise → commodities sell at prices of production, not labor-values.
Total surplus value = total profit → exploitation is social, not per industry.
Industries with high c/v receive more profit than their workers produced — subsidized by labor-intensive industries!

🔧 Marx's Equalisation of the Rate of Profit — Interactive Model

⚙️ Global Settings

📊 Profit Rates: Before vs After Equalisation

⚖️ Value vs Price of Production

📈 Results Table

💡 Key Marxian Insights