The marginalists found that the classical theory of value was inadequate to explain the forces determining prices. Value does not come from the past but value comes from the future. Factors of production are not price-determining but price-determined. Discuss
Value of goods comes from future because of its intrinsic potential and market base of customers and its overall lifetime value.
Factors of production are price determined because prices rule the production cycle, lower the price of product higher is the production ramped up to achieve economoes of scale akd thus pricing of good determines factors of production to be used like land, labor, capital. Prices thus control overall costs of capital and labor and land.
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