organic composition of capital
organic composition of capital The ratio between constant and variable capital in total capital, measured in value terms. In lay terms this can be understood as the capital/labour ratio, or the proportion of output contributed by raw materials, machinery and other inputs, relative to labour. Karl Marx thought the organic composition of capital would rise with the development of capitalism because of labour-displacing technical change. See also CAPITAL-INTENSIVE PRODUCTION.
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organic composition of capital
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organic composition of capital