Surplus Value

Discipline: Economics

Cited by English economist David Ricardo (1772-1823) and German political economist Karl Marx (1818-1883), surplus value describes the surplus derived from the use of a factor of production over its cost.

Marx noted that an employee works more hours than is necessary to provide basic subsistence for himself and his family, thereby creating a surplus, or profit.

Also see: theories of profits

Source:
K Marx, Capital, vols I-III (Harmondsworth, 1976-81)

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