Explain in detail Marx’s general formula for capital. In your explanation define and relate the connection commodities and surplus value have to the general formula.

Question

What will be an ideal response?

Answer 1

A cycle of exchange Marx labeled “M-C-M.” By definition, the capitalist enters into economic exchange already possessing capital (raw materials, machinery for production) or, more generally, money (M). Seeking to expand her business and profits, the capitalist converts her money into a commodity (C) by purchasing additional machinery, raw materials, or labor. The capitalist then uses these commodities to produce other commodities that are then sold for money (M). Hence, the meaning of the slogan, “It takes money to make money.” For the proletariat, the cycle of exchange takes an inverse path. Take a typical wage earner, for example.