"The value of a product is equivalent to the amount of labour exerceted in its production"
This is one of the most problematic statements ever made in Econ.
The 'value' of a product is different for everyone, and it's what you (or anyone else) will pay for it.
The idea that 'work = value' is one of the most distortionary ideas in business, even today.
Just had a discussion today about pricing a product, and it was derived from component prices. Trying to convince a room of people that 'price is not a function of cost' ... in 2017.
Yes - when things are commodities, often, price is a function of cost, because competitive pricing means just a small margin above cost, which will roughly be the same for most.
This is one of the most problematic statements ever made in Econ.
The 'value' of a product is different for everyone, and it's what you (or anyone else) will pay for it.
The idea that 'work = value' is one of the most distortionary ideas in business, even today.
Just had a discussion today about pricing a product, and it was derived from component prices. Trying to convince a room of people that 'price is not a function of cost' ... in 2017.
Yes - when things are commodities, often, price is a function of cost, because competitive pricing means just a small margin above cost, which will roughly be the same for most.