3. ( Marx’s labor theory of value) You are in a simple economy. The Marxian labor value of a ton of steel is 8 hours, th

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3. ( Marx’s labor theory of value)
You are in a simple economy. The Marxian labor value of a ton of
steel is 8 hours, the labor value of the wages necessary to produce
a ton of steel (V) is 3 hours, while the labor value of constant
capital (C) to produce that ton is 2
hours.
a. What is the surplus value (S) contained in a ton of steel
measured in hours? What is the rate of surplus value
(S’)?
b. What is the organic composition of capital for producing
steel (Q) ?
c. What is the Marxian rate of profit for producing steel?
d. Producing cotton requires an organic composition of capital
considerably less than the Q you calculated in (b). Assuming
that the rate of surplus value is the same for both goods, how will
profit rates in the cotton industry compare to those in
steel? Does this create a problem for Marxian value
theory? Explain briefly.