The neoclassical theory of value

In explaining the value (cost) and prices only utility eminent British economist Alfred Marshall, who developed the principles of the theory of the neoclassical synthesis, and saw the one-sidedness. From his point of view, arguing that the cost of regulated utility or cost of production is equivalent to the debate about how the blade of scissors - upper or lower - cut a piece of paper.

It is with the work of Marshall connected departure from attempts to create a monistic theory of value and price. The principle of monism involves finding a single source (the substance) of the cost, a single base price. So, in theory, Marx recognized this source of living labor. For theorists of the Austrian school is the marginal utility.

P. Samuelson, author of the famous American textbook belongs aphorism: "Marx is too important to leave it to Marxists."

In the theory of Alfred Marshall definition of value and price is reduced to asking the interplay of market forces behind both the demand side (marginal utility) and supply (production costs). The value of the goods to the same extent by the utility and cost of production.

Cost, thus acting as a ratio: the ratio of the seller and the buyer. The interaction of supply and demand forces leads to the formation of market prices. Therefore, interest is supply and demand factors.

Market demand is associated with the individual demand. It allows you to understand the changes in consumer behavior and the theory of subjective utility.

The proposal is ultimately determined by the behavior of the firm. Therefore, it is necessary study the theory and the theory of production costs. To answer the question about the cost and the price of goods is important to pay attention to the relation of people to the two fundamental economic phenomena - the needs and resources - in their relationship and interaction, but are not limited to the sphere of production or to the sphere of consumption.

The cost of the ratio between the producer and consumer of goods is usually determined with the help of money and, therefore, in the form of goods' price. In determining the price involved and the seller and the buyer. Each of them is governed by its own ideas about the acceptable level of prices, so at first appear the bid price and bid price, in other words, the price of the seller and the buyer's price. However, the interaction of supply and demand forces leads to the formation of the "price agreement" - the market price at which the actual buying and selling of goods.

The value of cost of goods, thus determined on the basis of equal treatment between spending seller (manufacturer) and the income of the buyer (customer) in which each party's assessment, ie, expressed in money, this value in its own way, guided by the maximum possible concessions friend other.

The labor theory of value, the theory of marginal utility theory of supply and demand (the neoclassical synthesis) of the basic approaches to determining the value in the history of economic thought.

Despite the difference in these approaches, the obvious is the fact that the product is created by labor. Special interest are the social characteristics of labor in commercial agriculture

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