Question

8. Both Ricardo and Marx developed labor theories of value. How does Marx’s theory differ from Ricardo’s?

Answer 1

Ricardo's Labor Theory of Value	Marx's Labor Theory of Value
He stated that prices = wages + profit (rent zero) because wages and profits determined prices while prices determined rent.	He stated the prices of production (i.e. c + v + s) were equal to dead labor or fixed capital plus living labor or variable capital plus surplus value or labor.
Labor embodied in commodities was the primary determinant of prices, and prices were equal to labor embodied (value) only when capital to labor ratios were the same across industries	Marx used "abstract" labor or socially average necessary labor and reduced all skilled labor down to a simple multiple of unskilled labor (homogeneous labor)
Ricardo's theory of profit was based on his corn models where the profit rate was equal to net product (NP) or total profit or r = f(x)/X (marginal production function divided by subsistence wage or the total capital advanced).	Marx "stated that profit rate could be expressed by the equation: r = s/v/(c/v + 1).