Karl Heinric MARX (1818-1883)
A lending theoretician of scientific socialism. He used classical analytical
tools to construct this system but his system was hostile capitalism.
Capitalism has some internal contradictions that eventually ensure
Within capitalism, the appearance that all labor is rewarded is an illusim.
Capitalists are not evil people who rob workers.
Rather they pay workers the market wage but they fail to understand the
crucial truth that source of their own profits
Capital Accumulation and Business Crises
Capitalist made of production => the process of exchange becomes
M C M ;
M= M M
(Surplus value generated by workers)
M > 0
is the motivation behind the expansion of investment. => basis for
LABOR THEORY OF VALUE (devam)
According to Marx;
Value of a commodity is determined by the socially necessary labor time
embodied in the commodity.
Meaning of this concept ?
for example; average labor time contained in a pair of shoes is 10hour
5. Pure Competition Emphasizes: They based their analysis on this assumption.
(EXCEPT Cournot who developed a theory of monopoly and duopoly.
Everybody is price taker.
6. Demand Oriented Price Theory: Classicals emphasized the cost of producti
Jeremy BENTHAM (1748-1832)
A British scholar, made significant contributions to utilitarian
philosophy roots of this philosophy were in Italy- ancient
times Hedonism or hedonist calculus
I-Marginalist School (1871) (first generation, Walras, Mengel)
Marginalist school became part of the Neoclassical school (a broader school
than the marginalist school) over time gradually involved