Introduction, 407. — I. Various meanings of profit, 407. — II. Relationship of corporate management to earnings, 414. — III. Maximizing profits by minimizing taxes, 416. — IV. Maximizing aggregate profits or rate of profit, 417. — V. Windfall profits, 419. — VI. Conclusion, 420.

Journal Article Diminishing Returns and the Relative Share of Labor Get access Alvin L. Marty Alvin L. Marty University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 67, Issue 4, November 1953, Pages 615–618, https://doi.org/10.2307/1883608 Published: 01 November 1953

THE following price and ration data were compiled in the city of Kiev in the months of June and July, I946.1 No attempt has been made to translate the prices into dollars, since both the official exchange rate of 5.30 roubles to the dollar and the diplomatic rate of I2 roubles, in effect at the time, were admittedly arbitrary. The problem of comparing Russian food prices with those prevailing in other countries is further complicated by a number of factors. The Russian diet stresses different products than those making up the western dietary,2 hence a comparison of specific prices may possess little significance. The price of rye and whole wheat bread is of dominating importance to the Russian consumer, while it is of secondary concern to the consumer in Canada and the United States. Quite the reverse holds true of the price of meat. The wide spread between prices in the ration stores and those in the commercial stores and the public markets characteristic of the period of rationing adds another complicating factor, and one that is only partially resolved by reference to the official ration scale, since the ration issue in some categories fell considerably short of the ration scale. Any calculation of food prices in Russia must also take into account the mid-day meal provided for workers in the factory canteen or in other types of communal feeding establishments.3 These meals were in addition to the regular ration and, although there are differences of opinion as to their adequacy, the price for what was provided probably was somewhat below the price for foods normally bought outside the ration. That the amount of foodstuffs allocated to this form of communal feeding was substantial is indicated by the following approximate distribution of foodstuffs delivered by UNRRA to the government of the Ukrainian S.S.R.: 55 per cent to the trade network for sale to the population on ration cards; io per cent to children's institutions, hospitals, and the like; 35 per cent to other forms of communal feeding, and of this category of supplies the mid-day meal for factory and office workers accounted for more than 8o per cent. These factors make the direct comparison of Russian food prices with those in the western world indefinite and ambiguous. More defensible and informative, if sufficient data were available, would be a comparison of food expenditures with monthly earnings based on a range of 350 to 500 roubles per month for unskilled workers and 8oo to Iooo roubles for skilled workers.4