Becomes Quote by Rudolf Hiferding
“As soon, however, as capitalist competition has definitively established the equal rate of profit, that rate becomes the starting point for the calculations of the capitalists in the investment of capital in newly-created branches of production.”
About This Quote
Source Book: Capital, Volume II by Karl Marx, 1885
When profit rates equalize, capitalists use that rate as a baseline to decide where to invest in new production sites.
In simple terms: Equal profit rates guide investment choices.
Key Takeaway
Use profit benchmarks to allocate resources.
Themes
economics
investment
competition
Mood
analytical
neutral
Type
theoretical
economic
When to use this quote
- business planning
- industry expansion
- market analysis
Key Concepts
capital accumulation
rate of profit
allocation decisions
Questions to Reflect On
- How does profit equalization affect market diversity?
- What non‑financial factors should influence investment?
A Different Perspective
Assumes rational calculation ignores social or environmental costs.
