🟠 Layer 2.2: Turnover & Fixed Capital — Finished

Marxian turnover & annualization. Assumes 52 weeks per year

Inputs

50%
Variable capital = wages — the only source of new value
50%
100%
13 weeks
10%
Assumptions
  • Turnover time includes production and circulation time.
  • All circulating constant capital is consumed each cycle.
  • Prices stable: commodity values and money prices are assumed constant, so no inflation/deflation distorts measurement.
    Full realization of S: all surplus value produced in production is assumed to be sold at its value, i.e. no unsold output or credit issues.
    No WIP or inventory drift: we ignore partially finished goods or fluctuating stockpiles, assuming each cycle cleanly begins and ends with inputs fully used up and outputs fully sold.
  • Marxian profit is S (surplus value). Accounting profit shown net of depreciation for comparison.

Outputs

🏭 Fixed Capital
$500
🧵 Circulating Constant (ccirc)
$250
🧠✋ Variable Capital (v)
$250
📦 Surplus per Cycle (Scycle = v × s/v)
$250
🔁 Cycles per Year (n)
4.0
📈 Annual s′ (s/v × n)
400%
💹 Annual Surplus (S = Scycle × n)
$1000
⚙️ Depreciation per Year
$50
🧾 Accounting Profit (S − Depreciation)
$950
📊 Marxian Rate of Profit (r = S / M)
100%
📊 Net Rate (Accounting) ((S − Dep) / M)
95%

Tip: Adjust s/v and turnover to see how intensification of exploitation and faster circulation raise the annual mass of S and the rate of profit.