Marx analyzes the commodity form, its characteristics, and the kind of society that rises with it. What is his argument about the nature of commodity exchanges? On what foundation of this analysis, he attempts to "force the secret of profit making" in capitalism. How does he demonstrate the way the way in which capital produces profit? Marx reference to commodity can be seen in two forms, use and exchange value, every useful value can be looked at from two points of view, quality, and quantity. A use value is a commodity that is useful. Use value is dealing with definite qualities, such as a dozen of vases or yards of material. Only by consumption, use value becomes a reality. .
Exchange value can be viewed as a quantitative relation. Goods are changed according to their equality of one another; for example, three tons of rice may equal a ton of iron. Use value commodities differ in qualities whereas exchange values differ in quantities. All products of commodity have only one thing in common and that they are all required in labor. When a product is transferred to another, where that product will serve as a use value by means of exchange, it becomes a commodity. Marx claims, the common substance that manifest itself in the exchange -value of commodities whenever they are exchanged, are their value. Although the exchange-value of commodities is only expressed in value, one has to consider the nature of value independently of this, its form. .
The value of each commodity is determined by the labor time it took to produce it in that society. What determines value of anything is the amount of labor socially necessary in its production. If product exchange at the amount of labor time socially necessary in their production then it would mean that the worker should be paid the value of their labor, the value of the commodities they create, but then where does product come from? How do capitalist make money? Well capitalists are only interested in making profit, and they make it from surplus value.
