"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?
Chapter1: Making Economics Decisions
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could you please provide an explanation to this
!["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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4061eb31-6ba2-4539-9b51-dd7b05481e7e%2F0f12472e-ff15-49d5-a1c0-fc4f7772761b%2Fmzje8wq_processed.png&w=3840&q=75)
Transcribed Image Text:"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?
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