The essence of the product and its properties

In terms of commodity production of the product of labor acquires new specific properties that turn it into a commodity.

Product - is the product of labor (the thing or service), a man-not for personal use, and to meet the needs of society and its members, and by entering the intake of sale.

This product is a key category of commodity production. There are different approaches to the understanding of its essence.

1. In Marxist theory, commodity regarded as a useful product of human labor to be sold. From this definition, it follows that:

1) The item is just something that satisfies some human need;

2) The item is that approbated difficulty, such as berries in the woods for their collector is not a commodity, but may become so after the labor expended in their collection;

3) The product is something that is for sale.

2. In the Austrian economic school (it is a prominent member of the Menger) product is defined as a specific economic benefit produced for exchange.

The economic benefits of Menger are those that are the object or effect of economic activity and may be obtained in an amount limited compared to the needs.

Common between these definitions is that they product is considered as the result of labor. The difference is that the second definition takes into account the relationship between the demand for and availability of welfare benefits, and the first - do not take into account.

Despite these different approaches, and that and the other school is recognized that the goods can be created by the labor and useful products, and proven hard gifts of nature and the different types of services.

Specificity of service is that it has no physical form, but is the result of human activities that have a beneficial effect.

This product has two properties:

• the ability to meet any human need;

• the ability to exchange for other goods.

The ability of any goods to satisfy human need is called a use-value.

Each product has a use-value. It meets the needs not only of its creator, but also other people, that is, is a public use value. And most producers are interested in it only because it relates to the ability to exchange goods for other goods.

The ability to exchange goods for other goods to a certain quantitative proportions of an exchange value.

The question is what is the basis of the exchange and determines the quantitative proportion in which goods are exchanged for one another, for the first time put Aristotle. In the future, various economists have responded to it in different ways.

According to supporters of the labor theory of value, exchangeable goods have a common basis in the form of labor costs, which determine the cost. Consequently,

Value - is embodied in the product of social labor producers.

According to the proponents of the theory of marginal utility, based on the exchange is useful.

Representatives of the concept of cost-reduce the cost-to-cost

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