The product – delivered with a commodity – presents the commodity’s cost. Thus, the value is just all inputs used during the production of a particular product in order to bring it to the market. Production costs reveal the market value of a commodity as the raw materials for it enter its production process through the market. The value of a derived good is dependent on the value of its raw materials, since their market value is in accordance to the supply of them: as bigger is the supply of raw materials as lower is the cost of production, there for, the market value of an economic good is given by the cost of the last bit of it.
Historical Backdrop
• DAVID RICARDO On the Principle of Political Economy and Taxation: value is equal to the expenses of the most unfavourable production for the quantity required.
• FRIEDRICH WIESER Natural Value: opportunity costs.
• BENEDETTO CROCE On the Economic Principle: non-value.
• JAMES BUCHANAN Cost and Choice: An Inquiry in Economic Theory: dated cost.