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You've confused fundamental value with fundamental cost. A hand-knit sweater will not necessarily (or even usually) fetch a selling price equal to the input val
by RyanCavanaugh 9y ago
You've confused fundamental value with fundamental cost. A hand-knit sweater will not necessarily (or even usually) fetch a selling price equal to the input value of the labor that went into it.
There are many endeavors which produce goods whose market-clearing price is below the value of effort required to produce them.
- mywittyname 9y agoHouses are a good example. When land is plentiful, the cost of a house is usually a slight discount over what it would cost to build a similar one for new.