Could the difference between "labor embodied" (production cost in labor value) and "labor commanded" (selling price in labor value) as described in the labor theory of value be attributable to the disparity between individual and social labor power?


Individual labor power is the labor required to produce a good. Social labor power is the average labor of the society to produce the good. If the social labor is higher than the individual labor, the selling price in labor, or labor commanded as Adam Smith would say, would be higher than the labor embodied, or the labor required to produce, and profit would be possible. However, this profit might also be attributable to the utilization of frozen labor in the form of capital by the laborer. A Marxist would of course say that profits are a subtraction of the total product of living labor. Since all frozen labor was once living labor, true profit would then be theft.


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