Economics of production

with fixed manufacturing overheads and whether or not they are included in valuing inventory. The marginal cost is the total variable cost of the product, it consists of direct labour hours, direct materials and direct expenses, therefore when the production units increase, the total variable cost will increase proportionately. In other word, the marginal cost can be avoid if there are no any unit to be produced and will…

collective capitalism, and so on. The definition of capitalism is “a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principle (Heywood, 2007)”. Many theorists, like Simon Tormey (2004) and Ellen Meiksins Wood (1991), also identify capitalism as a system. It could be argued…

For instance, Weber agreed with Marx that there had to be structural conditions for capitalism. Weber also agreed with part of the analysis of the impersonal capitalist society and the commercialisation of economic life. Overall, this essay will show how Marx and Weber were both interested in the cultural significance and the consequences of modern western capitalism (Löwith 1993, p.34). However, this essay will further argue that Weber had partially different…

Henry Ford, founder of the Ford Motor Company, popularized Fordism in the 1920’s. Signifying the development of mass production and the establishment of what is now recognised as consumerism. Ford developed the model of mass production, changing the way products were manufactured, simplifying tasks and reducing the necessity for skilled workers in labour roles and introduced management positions to the manufacturing industry. A fundamental principle Henry Ford pioneered was that product…

In the excerpt from Anti-Duhring, called Theoretical, through his historical materialism approach, Friedrich Engles explains that the capitalist mode of production has a fundamental contradiction and by using examples of social and economic struggles, he further validates his position for the basis of the contradiction. By examining these social and economical examples, Engles attempts to demonstrate that over time, capitalism will fail and socialism is the favorable choice. In his article,…

upon what they observed happening around them and extrapolated as to the condition of the future. One foundational product of contemporary societies, that truly came into existence at the time during which they were writing, would be the economy and economic life. Looking at it on a macro level perspective, it is one of the aspects of the social superstructure. It is a social institution by itself, but it also shares a give and take relationship with other institutions in society and the…

Interplay between Hegelian Dialectic and Marx’s Dialectical Materialism G.W.F. Hegel proposed that “dialectic” concerned itself with the process which went into knowing the “whole” of anything. Hegel equated “whole” with “totality”. According to him, only the whole is true. The whole is composed of moments that are partial wholes. The relationship that existed between these partial wholes is of prime importance. The whole contains within itself all the moments that it has overcome. Basically,…

both be maximized, insisting that natural is actually social. Marx believed that workers would be exploited by capitalists or owners of the means of production and that this capitalist system favors the rich and not the poor. Further, as the owner, the owner is able to negotiate lower and lower wages for the worker alienating them from their production in the class conflict between the bourgeoisie and the proletariat. This matters as how we think about markets and how embedded or important they…

communists, only refers to private ownership of industry or the means of production; the things you own personally are not private property in this sense. Marx and Lenin would just call them personal belongings. Socialist economic systems seek to end private property by making the means of production collectively owned and democratically operated by the workers; the state protects the workers’ ownership of the means of production. For Marx, the important question is not private property, because…

stratification on present day concerns that affect our lives. Despite bearing some minor similarities, the difference between Marx and Weber are pronounced. For Karl Marx, class reflected society and production. Marx looked at how the material production is socially organized. It is characterized by the relations of economic subordination and domination. Marx looked at society and division of labour and finds that two different class that bring differences…