4.The two-fold character of commodity value. Individual and social necessary labor time.

The goods have the dual nature, i.e. act at the same time as consumed cost and cost that the work embodied in the goods, has the dual nature.

In what the dual nature of work embodied in the goods consists?

First, work always acts in a certain concrete form as work concrete.

It means:

- We can always tell, what exactly is made by the person, which consumer cost creates (bread, footwear, furniture, etc.)

- We can tell that is an object of the labor of the person (a flour, skin, tree)

- We can specify, what operations are carried out by a producer, with which instruments of labor uses.

Qualitatively diverse the work which result is consumed cost goods, concrete work. Concrete work acts as private work.

There is a large quantity of versions of concrete work. At the same time, all types of various concrete work which differ in a form, both a subject and tools, have common features. What work wouldn't carry out and the person, it always spends the energy: physical, spiritual, intellectual. So, the baker, baking bread, spends physical energy, he thinks of, how to make bread attractive to buyers, how to stand in the competitive to fight, it loses intellectual energy. At last, he worries bread tasty will turn out, whether he can sell it in due time - our baker spends nervous energy.

Labor expenses in physiological sense, expenses human energy in the course of production of the goods form the abstract party labor.

Abstract work forms goods cost. Abstract work acts as work social commodity, has the dual nature.

Commodity

Consumed value Value

Concrete labor Abstract labor

Private labor Social labor

Social division of labor

Main contradiction of commodity production.

It is known that concrete work has private character, and abstract work acts as work public.

Private work consists that a producer of these goods Also works for the unknown market, it is separated from others producers, he doesn't know plans of other producers, he acts on to own discretion and own risk.

On the other hand, in the conditions of public division of labor the goods it is made not for itself, and for an exchange, for consumption by other persons. It also means that work of a producer has public character.

At the moment of production of the goods the producer only hopes, that its private work will be recognized public that he created cost. It is possible to create a product and not to create cost. Why? If the created product isn't sold, work is spent, but cost not it is realized.

Cost is created in the course of production, and proves only in the exchange sphere in the market. If the exchange took place, private work of the producer gained public recognition. Contradictions between abstract and concrete, private and social activities acts in film (or doesn't act in film) in the market.

Contradictions between private and public nature of work is main contradiction of commodity production.

Conclusions

- The goods have the dual nature, i.e. act at the same time as consumed cost and cost that the work embodied in the goods, itself has the dual nature.

- Work always acts in a certain concrete form as work and it is concrete: we can always tell, what exactly is made by the person that is object of the labor of the person, we can specify, what operations carries out he producer, uses what instruments of labor.

- Qualitatively diverse the work which result is consumed cost goods, concrete work. Concrete work acts as private work.

- Labor expenses in physiological sense, expenses human energy in the course of production of the goods form the abstract party, work.

- Abstract work creates goods cost. Abstract work shown as work public.

- Cost of all goods is defined by quantity abstract socially the necessary work spent for their production.

- Concrete and abstract work is the two parties, two properties of the work creating the goods. Work which creates the goods, at the same time and abstract, and concrete.

- Cost is created in process production, and proves only in the exchange sphere in the market. If the exchange took place, private work of the producer gained public recognition.

- Contradictions between private and public nature of work is and main contradiction of commodity production.

5. The magnitude of commodity value. Individual and socially necessary labor time.

It is known that cost of the goods is created by expenses of the abstract socially necessary work. To define cost of the goods, it is necessary to measure the work expenses which adequate measure is time spent on production unit goods.

However on production units of the same goods different and producers use different quantity of working hours. Let's assume, what is the firms make man's shirts of one type, in firm A on production one shirt spend hour, in firm B – 45 minutes , in firm C - 30 minutes. Individual cost of a shirt at firms is various. Why? Firms can apply various technologies, working in differ a different skill level, in one firm it is better work is organized, on another - is worse. Therefore also individual cost product units at them different.