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Aichi Travel on Over time as other capitalist firms adopt the new technique to remain competitive, the profit advantage would disappear. Capitalist firms as a whole will find themselves with a higher composition of capital (capital to labor ratio) and consequently a lower profit rate at a constant rate of surplus value. Marx’s theory of the falling rate of profit predicts that the drive to capital accumulation would lead to the breakdown of capitalism. BIBLIOGRAPHY. Maurice Dobb, Theories of Value and Distribution Since Adam Smith: Ideology and Economic Theory (Cambridge University Press, 1989). E.K. Aichi Travel 2016.

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