What Is Average Profit?

Average profit refers to the same amount of profit obtained by investing the same amount of capital in different departments or the profit obtained by functional capitalists at the average profit rate. It is the result of the redistribution of total social surplus value among capitalists in various sectors, and it reflects the collective exploitation of the entire proletariat by the entire bourgeoisie. Obtaining average profits is an inherent requirement of equal rights of capital and the social division of capital. Profit averaging is just a trend, and the same amount of capital in actual economic life may not always yield the same amount of profit. The capital participating in profit equalization is mainly industrial capital, agricultural capital, commercial capital, and bank capital, so industrial profit, agricultural profit, commercial profit, and bank profit must be equal to the average profit in volume. After profit is converted into average profit, the average profit obtained by each production department is generally different from the actual production profit or surplus value in quantity. The same amount of capital in different sectors can obtain the same amount of profit. It seems that the amount of profit is only related to the amount of capital, and has nothing to do with the amount of labor. This further conceals the nature and origin of profit and the exploitation relationship of capitalism. ^[1]

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Average profit

The formula for calculating average profit is:

Average profit = [[

The average profit is formed by competition between sectors.

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Average profit industrial capital

First, profit is converted into average profit

(1) The profit margins of different departments are different:

(2) Equal amount of capital requires equal profits: competition between departments promotes equalization of profits in different departments;

(3) Sectors with low organic composition have a large amount of surplus value. After the sale, only average profit is obtained, and the surplus value is transferred out. The sector with high organic composition is the opposite. For those with medium organic composition, their profits are equivalent to average profits.

(IV) Meaning of average profit formation:

1. Cover up the relationship of exploitation;

2. The opposition between the two classes, the bourgeoisie and the working class.

Conversion of value into production price

(1) Production price: the sum of cost price and average profit;

(B) Significance:

1. Market price fluctuations are not centered on value, but centered on production price;

2. The formation of production prices indicates that capitalism has reached a certain height;

3. The relationship between value and production price is covered up, forming the economic foundation for capitalists to jointly exploit workers.

(3) Does the deviation between value and production price violate the law of value?

1. Does not violate;

Reason:

(1) The formation of production prices is the result of competition among commodity producers, that is, the role of the law of value;

(2) The amount of profit of an individual sector is not equal to its amount of residual value, but the total amount of profit in society is equal to the amount of total residual value;

(3) The production price and value of individual sectors may deviate, but the total production price and value of the society are equal;

(4) Changes in the amount of value affect changes in the amount of production price.

Third, the production price and market value and market price

(1) Competition within the sector forms social value; social value is also called market value.

(2) Market price: currency performance of market value.

Average profit business capital

I. Formation and role of commercial capital

(1) Commercial capital existed in ancient times:

(2) the characteristics of ancient commercial capital;

(3) The formation and role of capitalist commercial capital:

1. Differentiate from commodity capital in industrial capital;

2. Possibility and necessity:

(4) Meaning of independence of commercial capital:

1. Industrial capital reduces the occupation in circulation and increases production capital, which can get surplus value;

2. Commercial capital becomes independent, and the average profit rate is improved by using turnover;

3. The development of trade is of great benefit to the development of capitalism and it is of great benefit to the expansion of the market;

4. Deepening the contradictions of capitalism.

Second, business profit is also average profit

(1) Commercial profit: The profit obtained by commercial capital in circulation is called commercial profit;

(2) The source of commercial profits: part of the surplus value created by workers is part of the profits that industrial capitalists have transferred to commercial capitalists.

(3) Formation of average profit of commercial capital:

1. Commercial capital has performed the function of commodity capital in industrial capital, and profits should be obtained accordingly;

2. Competition enables commercial capitalists and industrial capitalists to make profits at average profit margins;

3. The commercial capitalist obtains an average profit from the transfer of the value difference of the industrial capitalist.

3. Commercial circulation expenses

(1) The concept of commercial circulation expenses:

(2) Productive circulation costs:

(3) Pure circulation costs.

(4) Compensation for circulation costs:

1. Compensation for productive circulation costs: compensation by increasing the value of commodities;

2. Compensation for pure circulation expenses: Compensation is made through price increase of the goods.

Exploitation of commercial employees by commercial capitalists