This lecture continues Yale instructor Paul North's chapter by chapter study of Marx's Capital, Volume 1, shifting the analytical vantage point to what Marx calls the standpoint of production. North unpacks Marx's definitions of valorization and surplus value, explaining how value is created and expanded once labor enters the production process rather than simple exchange. The session builds directly on the prior class's introduction of capital's general formula, moving the course toward its central chapters on the working day. As throughout the series, North's method is a close, sequential reading of the original 1872 text rather than a general summary of Marxist theory.