variable capital

The source of surplus value comes instead from Variable capital or labor power.

Variable capital is almost exclusively a component of circulating capital.

At the assumed rate of accumulation a, the variable capital v reaches the level:

Variable capital is "variable" because its value changes (varies) within the production process.

This affects the magnitude of a society's variable capital and the value of labour power.

The number of labourers commanded by capital may remain the same, or even fall, while the variable capital increases.

Constant capital contrasts with variable capital, v, the cost incurred in hiring labor power.

Furthermore, the remainder of variable capital available is directed towards hiring workers with the expertise skills to operate new machinery.

Does this difference constitute a part of the variable capital or should it be considered as being part of the social surplus-value?

The capital "set free" cannot be used for compensation since the displacement of variable capital available becomes embodied in the machinery purchased.

The significant difference is that our interpretation of the capital-output ratio includes variable capital, not merely fixed capital stock.

This is because in contrast to the constant capital expended on means of production, variable capital can add value in the labor process.

However, the salaries of some "overhead" employees (who have long-term security from being fired or laid off) are in effect, fixed elements of variable capital.

However, Marx argues that the introduction of machinery is simply a shift of variable capital to constant capital.

It refers to one of the forms of capital invested in production, which contrasts with variable capital (v).

Variable capital by contrast refers to the capital outlay on labour costs insofar as they represent workers' earnings.

In turn, value added is equal to the sum of variable capital (labor's compensation) and surplus-value (pre-tax profit income).

The value used to purchase labor-power, for example the $1,000 paid in wages to these workers for the week, is called variable capital ().

Increase of variable capital, in this case, becomes an index of more labour, but not of more labourers employed.

As labour produces in this sense more than its own value, the direct-labour input is called variable capital and denoted as .

The total value of each produced good is the sum of the above three elements: constant capital, variable capital, and surplus value.

(The constant and variable capital of the economy as a whole is a weighted sum of these capitals of the two departments.

Subtracting from total sales the value of constant capital plus variable capital (c + v) gives profits s.

In Marxian theory, variable capital refers to a capitalist's investment in labor-power, seen as the only source of surplus-value.

Karl Marx, "Constant capital and variable capital", in Capital Vol.