Simple and Expanded Reproduction (Ben Fine Diagram)
An example: Department 1 produces the means of production. In this case, spatulas. It is owned by Capitalist 1, who owns a kitchenware factory. Department 2 produces the means of consumption. In this case, burgers. It is owned by Capitalist 2, the proprietor of a restaurant. In case of simple reproduction, let's assume that these two businesses exclusively buy and sell each other's products and no surplus is left over. This is for the sake of simplicity. First, we'll talk about Department 1. F is Capitalist 1's money-capital (let's assume that he borrowed money from the bank). Using this money, he buys constant capital 1. A (constant capital 1) is Capitalist 1's commodity-capital. This refers to the means of production (MP) and labor-power (LP) which the capitalist owns. In the former, the metal, rubber (for handles), machines used to make the spatulas, and in the latter, the labor-power of his employee, who assembles these. B isthe process by w...