variations in skill?
The prices of capital goods will differ from their labor values in individual industries. Since the economy is not in standard proportions, the total labor value of capital will not be its price. Nor will the total labor value of output be equal to its price. But the price of outputs in each industry and in the economy as a whole will be the sum of the price of capital goods and labor inputs. Furthermore, although labor contributes total value-added, the workers are not paid the entire net output. Perhaps these observations are enough to justify Marx’s theory of value. The New Interpretation Applied to This Example. Marx’s equalities can also be justified by the “New Interpretation.” Since the net output per worker was chosen as the numeraire when calculating prices of production, a dollars worth of net output represents, in some sense, one person year. In the technical terminology of the New Interpretation, the Monetary Expression of Value is unity. Notice that the Monetary Expression
