Editing Transformation problem (section)

=== Value formulas ===
The total value of each produced good is the sum of the above three elements: constant capital, variable capital, and surplus value. In our previous example:

:<math>p_i = c_i + v_i + s_i = l_A a_i + l_W l_i + s_i </math>

Where <math>p_i</math> stands for the (unit) Marxian value of beavers and deer.

However, from Marx's definition of value as total labour embodied, it must also be true that:

:<math>p_i = l_A a_i + l_i = E_i</math>

Solving for <math>s_i</math> the above two relationships one has:

:<math>{s_i \over v_i} = {(1- l_W) \over l_W} = \sigma </math>

for all <math>i</math>.

This necessarily uniform ratio <math>{s_i \over v_i} = \sigma</math> is called by Marx the [[rate of exploitation]], and it allows to re-write Marx's value equations as:

:<math>p_i = c_i + v_i (1 + \sigma) = l_A a_i + l_W l_i (1 + \sigma)</math>