Julio Huato wrote: >> ... Saying that a "resource" or a "good" is scarce is the same as >> saying that the productivity of the labor that (re)produces is a >> finite magnitude. If labor productivity were infinite, then all goods >> would exist in infinite abundance.
in other words, the value of a commodity produced with labor having infinite productivity would equal zero (since value (labor exerted per unit of output) = 1/(labor productivity), since labor productivity = units of output per unit of labor exerted). However, a successful monopoly would prevent the price from falling to zero. (Here, "prices" are measured in the same units as values.) raghu wrote: > That might apply to most commodities, but does that apply to finite > non-renewables like oil? in the case of desirable non-renewables, it's usually true that price > value. That is, when demand is sufficiently high, the owners of the non-renewables would receive a "land rent" or a "scarcity rent." -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
