On Jul 23, 2010, at 7:52 PM, James Heartfield wrote:
> ...commodities exchange at a price that is closer to their price-of-
> production...
How often do I have to repeat the point?: commodities exchange at prices of production only when the market is perfectly competitive and the ceteris paribus assumption is valid. In the real world, in which perfect competition is perfectly insignificant, commodities are priced according to oligopoly ("imperfect" or "monopolistic" competition) or monopoly pricing. Value is a class relationship, and has absolutely nothing to do with relative prices.
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90