This article analyses the transformation of values into prices of production from the point of view of differences in the organic composition of capital. Marx's transformation has two stages. In the first, the value of the means of production used up is irrelevant; in the second, the economy is analysed at the level of price. The transformation helps to explain the distribution of labour and surplus value across the economy, and substantiates the claim that value is produced by labour alone. However, it does not allow the vector of prices of production to be calculated.
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