▁i . e . ▁how , ▁through ▁the ▁circul ation ▁and ▁compet itive ▁dynamics ▁of ▁capital , ▁changing ▁exp end it ures ▁of ▁social ▁labor ▁are ▁recon ci led ▁with ▁( or ▁fail ▁to ▁be ▁recon ci led ▁with ) ▁changing ▁social ▁needs . ▁In ▁the ▁third ▁volume ▁of ▁Das ▁Kap ital , ▁he ▁a ims ▁to ▁show ▁how ▁the ▁competition ▁for ▁prof its ▁from ▁production ▁is ▁const rained ▁by ▁the ▁law ▁of ▁value ▁and ▁how ▁this ▁shapes ▁the ▁development al ▁pattern ▁of ▁capital ist ▁production . ▁He ▁con cludes ▁that ▁the ▁law ▁of ▁value ▁cannot ▁directly ▁reg ulate ▁comm od ity ▁prices ▁in ▁capital ist ▁production , ▁but ▁only ▁indirect ly ▁( pr ices ▁of ▁production ▁are ▁const rained ▁by ▁compar ative ▁costs ▁in ▁labour ▁time ). ▁ ▁Marx ▁pra ised ▁Adam ▁Smith ▁for ▁already ▁recogn izing ▁that ▁in ▁the ▁transition ▁" from ▁simple ▁comm od ity ▁exchange ▁and ▁its ▁law ▁of ▁value ▁to ... ▁exchange ▁between ▁capital ▁and ▁w age - lab our ... ▁something ▁new ▁occurs , ▁[ so ▁that ] ▁apparently ▁( and ▁actually , ▁in ▁the ▁result ) ▁the ▁law ▁of ▁value ▁changes ▁into ▁its ▁opposite ." ▁However , ▁Marx ▁noted ▁both ▁Adam ▁Smith ▁and ▁David ▁Ric ardo ▁were ▁unable ▁to ▁explain ▁consist ently ▁how ▁product - values ▁were ▁reg ulated ▁by ▁labour - time ▁within ▁capital ist ▁production . ▁Both ▁Smith ▁and ▁Ric ardo ▁deeply ▁believed ▁that ▁price ▁structures ▁for ▁products ▁were ▁determined ▁by ▁the ▁law ▁of ▁value ; ▁but , ▁Marx ▁argued , ▁neither ▁of ▁them