if production prices fall due to greater productivity of labour, and selling prices fall for the same reason, the demand, and with it the market-prices, often rise even faster than the supply, so that selling prices yield more than the average profit.
 Karl Marx, Das Kapital (1894). copy citation

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Author Karl Marx
Source Das Kapital
Topic profit price
Date 1894
Language English
Reference
Note
Weblink https://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-...

Context

“[Roscher, Die Grundlagen der Nationalökonomie, 3. Auflage, 1858, S. 192. — Ed.] grounds, which produced the change in selling prices, and that it was not a result of a revolutionised mode of production. Thirdly: if production prices fall due to greater productivity of labour, and selling prices fall for the same reason, the demand, and with it the market-prices, often rise even faster than the supply, so that selling prices yield more than the average profit. Fourthly: a merchant may reduce his selling price (which is never more than a reduction of the usual profit that he adds to the price) so as to turn over a larger capital more rapidly. All these are matters that only concern competition between the merchants themselves.” source