When I was in college, a friend of mine knitted me a scarf as a birthday present. I adored it (and still do). But the economics of it is interesting to reflect

When I was in college, a friend of mine knitted me a scarf as a birthday present. I adored it (and still do). But the economics of it is interesting to reflect on. We were both poor college students, with no real family support, working 30-40hr weeks at coffee shops in order to pay rent and buy food, pulling $8/hr plus tips. The cost of yarn was a half an hour's worth of work, and the hours it took her to knit it were done while relaxing and watching shows. So labor was considered a write-off, in terms of labor. To her, the gift only cost was the yarn. Time and opportunity at work for more hours were scarce, so it wasn't like we could just work more instead. Quantifying the value of the scarf didn't really change in my mind. To me, the fact that she spent all that time on it meant it was special and invaluable to me. Especially since it wouldn't make economic sense for her to try starting a business selling them.