ABSTRACT
A capitalist in a particular industry would not adopt a new technology unless it was less costly and therefore more profitable than the existing technology in the short-run, that is unless it was cost reducing at current prices and the current wage rate. The Sraffian framework is well suited to analyzing if any new technological discoveries will be adopted or rejected by capitalists, as well as the effects of technological changes which are adopted on prices, income distribution, and economic productivity. Marxists and Sraffians are in agreement that if and only if a new technology reduces costs of production will profit maximizing capitalists adopt it. Marxists and Sraffians are also in agreement that after a technical change is adopted by all in an industry there will be a general adjustment in relative prices to eliminate super profits in the innovating industry, and once again yield a uniform rate of profit throughout the economy.
