Economics 493
Winter 2010
Homework 6
Due Wednesday, March 3
1. According to Marx, why does profit fall over time?
2. Use the numerical example developed in class to examine what happens to the rate of exploitation and profit if the length of the working day is extended to 15 hours.
3. (a) What was Jevons' main contribution to the theory of exchange? (b) What is the water-diamond paradox? How does Jevons solve it?
4. Compare and contrast Menger's and Jevon's views on total and marginal utility.
5. Explain Clark's marginal productivity theory and how it was used to counter Marx's claim that labor is exploited under capitalism.
6. (a) What was Edgeworth's main contribution to utility theory? Explain. (b) Explain the contributions made by Edgeworth to production theory.
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