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[22] Hans: Labor theory of value versus demand and supply. In response to Catfish's [21] I'd like to remind everyone
that in the readings presently assigned, Marx gives a
derivation of the labor theory of value. He argues that in
the long run, the exchange-value is based on the labor
content of the commodity. It is therefore not dependent on
the need for the commodity at all. The need only determines
how much will be produced, and it may have short-run effects
on prices before the quantities have had time to adjust.
But in the long run, exchange-values are based on the social
cost of the product, and this is only the labor-time, all
other costs are ignored by the one-dimensional market
mechanism. |
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