"Marx started from the proposition that capitalists aim to accumulate ever-increasing wealth by extracting surplus value, which is the production value in excess of what workers receive in the form of wage payments" (Mitchell et al. (2019) Section 11.8 p. 177) Which assumption of the classical model can be adjusted so that we have a model where workers receive a real wage below their marginal product of labour? How might this look graphically?

"Marx started from the proposition that capitalists aim to accumulate ever-increasing wealth by extracting surplus value, which is the production value in excess of what workers receive in the form of wage payments" (Mitchell et al. (2019) Section 11.8 p. 177) Which assumption of the classical model can be adjusted so that we have a model where workers receive a real wage below their marginal product of labour? How might this look graphically?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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