Okishio’s theorem is wrong.
Yu 16 [Bin; Doctor of Economics, is a researcher at the Academy of Marxism of the Chinese Academy of Social Sciences, founder of the Engels School of China; “Is There a Tendency of the Rate of Profit to Fall? Theory, Evidence and an Adequate Model”; World review of political economy Vol. 7, Issue 4; 2016; pp. 411-423] //adhi
As Harman noticed, the capitalists pursued the extra surplus value in competition with other capitalists. Consequently, Okishio was incapable of refuting the law of the falling rate of profit. On the contrary, Okishio completely ignored the capitalists’ pursuit of profit. In fact, the cost of luxuries was much higher than that of common merchandise, whereas capitalists would produce luxuries because high cost implies high price and consequently high profit.¶ Marx claimed that the high organic composition of capital would cause a fall of the rate of profit, but this does not mean the former is the only reason for the latter. So enumerating other possible reasons for a falling rate of profit is not sufficient to disprove the law of the falling rate of profit. This is especially so in this case because price cannot be taken as one of the factors that changes profit, since it is a dependent, not an independent, variable.