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If I spend $500 in energy to cook mac and cheese, is that mac and cheese worth $500? More precisely: Does the cost of making something have anything to do with
by consz 14y ago
If I spend $500 in energy to cook mac and cheese, is that mac and cheese worth $500?
More precisely: Does the cost of making something have anything to do with the price it is sold at?
- dllthomas 14y ago"Anything"? Yes. People aren't going to make new things at cost X with the goal of selling them at cost Y. If they did, the price would fall further, faster. Therefore, there's some relationship. That said, it's by no means a floor, particularly on goods that stick around a while, since the things already in existence can more than meet the demand, which can drive the price arbitrarily low.