immediately occasion an alteration in its relative value, but such alteration is owing to the altered quantity of requisite labour, and not to the rise of wages.
If the fixed and circulating capitals were in different proportions, or if the fixed capital were of different durability, then the relative value of the commodities produced, would be altered in consequence of a rise of wages.
First, when the fixed and circulating capitals were in different proportions, suppose that instead of 100l. fixed capital and 100l. circulating capital, the hunter should employ 150l. fixed capital and 50l. circulating capital, and that the fisherman should on the contrary employ only 50l. fixed capital and 150l. circulating capital.
| If profits be 10 per cent., the hunter must sell his goods for 79 l. 8 s. For, | |
|---|---|
| To replace his circulating capital of 50 l. with a profit of 10 per cent. would require a value of | 55 l. |
| To replace his fixed capital with 10 per cent. profit, the present value of an annuity for ten years of 24.4 l. at 10 per cent. being 150 l. | 24.4 l. |
| —— | |
| 79.4 l. |