Value, cost, marginal utility, and Bohm-Bawerk

posted by
January 16, 2011
Foundation for Economic Education
by Sheldon Richman  
Posted in Commentary

"Does cost of production determine price or does price determine cost of production? In the world of economic caricatures, the classical economists (Smith, Ricardo, et al.) took the former position, the Austrians the latter. Specifically, the Austrian view supposedly is that that demand driven by marginal utility determines the price of consumer goods, which is then imputed backward to the factors of production." (01/14/11)  


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