Rent and Profit

In Marx we distinguish two types of land rent. The first is the differential land rent while the second is
the absolute land rent. The first, in turn, is split into differential rent I and differential rent II. We begin
to see the first type of differential rent. It depends on investing the same capital, the same amount of
money, on land with different productivity. The second type of differential rent, on the other hand,
depends on investing different capitals, different amounts of money, on land with similar productivity.
Thus, in the first case the surplus value comes from the productivity of the best land while in the second
case it comes from the productivity of the worst. In turn, absolute ground rent can come from two
factors. On the one hand, from the monopoly on the ground. The second, instead, depends on the
organic composition of capital in the agricultural sector which, being lower compared to the industrial,
allows a greater production of surplus value and, consequently, a greater value (greater working time) of
the products and of the agricultural production compared to their production prices determinened by
the social necessary labour time which, implying an higher organic composition of capital compared to
agricultural production, would capture a greater share of social working time, i.e., of suprlus value by
exchanging less labour time coagulated in industrial production.

The same process takes place within industrial production. The profit we can thus distinguish it in
absolute and relative. The relative, in turn, can be divided into two parts. Relative profit I arises when the
same amount of capital is invested in productions with different degrees of productivity. The relative
profit II arises when different amounts of capital are invested in production with similar degrees of
development (productivity). Thus, in the first case, the surplus profit comes from the productivity of the
highest industry while in the second case it comes from the productivity of the most backward industry.
Finally, absolute profit depends, on the one hand, on the private ownership of the means of production
(including means of transport, communication, etc.) and, on the other, from the different organic
composition of capital in the industrial sector which, being higher than another industrial sector or higher
than the social average and being in addition higher than the agricultural production, it allows a greater
hoarding of surplus value produced in industries with a lower organic composition of capital or of the
agricultural sector and, consequently, a lower value (less working time) of industrial products and
industrial production than their production prices determinened by the social necessary labour time
which, implying a lower organic composition of capital compared to backward industrial or agricultural
sector, would capture a greater share of social working time, i.e., of suprlus value by exchanging less
labour time coagulated in industrial production.