So, the price of a good is determined by the utility (or some other property) of the marginal unit of the good. But, obviously, which unit is the marginal one consumed depends on the price.
This of course could be resolved by postulating a demand curve with all of each price and its corresponding marginal unit, and the corresponding profit maximizing price chosen. This then relies on cost of production. You can regress all the way to a point where there is no circularity. But, for more political economy oriented people, doesn't the cost of production of goods, even when you regress to the point where there are no produced inputs, depend on prices? Say at certain prices of goods, workers will effect a slowdown in protest etc... Is this a circularity or is it resolvable?
