Competition between capitals in different sectors introduces an important shift in the level of analysis in Capital. This type of competition, and the possibility of capital migration, explains the distribution of capital and labour across the economy, and transforms the expression of value as price; the latter become prices of production. The transformation of values (or, more precisely, ‘value’, ‘simple’ or ‘direct’ prices, proportional to RSNLT; see section 5.4) into prices of production is due to the distribution of surplus value according to the size of each capital, regardless of origin.