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Market price is a familiar economic concept: it is the price that a good or service is offered at, or will fetch, in the marketplace. It is of interest mainly in the study of microeconomics. Market value and market price are equal only under conditions of market efficiency, equilibrium, and rational expectations.
At the micro level, one sub-discipline eliciting increased attention in recent decades is analysis of internal labour markets, that is, within firms (or other organisations), studied in personnel economics from the perspective of personnel management. By contrast, external labour markets "imply that workers move somewhat fluidly between firms ...
The labor market demand curve is the MRPL curve. The curve shows the relationship between the quantity demanded and the wage rate holding the marginal product of labor and the output price constant. The units of labor are on the horizontal axis and the price of labor, w (the wage rate) on the vertical axis. The price of labor and the quantity ...
The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of "socially necessary labor" required to produce it. The contrasting system is typically known as the subjective theory of value.
Market analysis is typically the neoclassical answer to price questions, such as why does an apple cost less than an automobile, why does the performance of work command a wage, or how to account for interest as a reward for saving. An important device of neoclassical market analysis is the graph presenting supply and demand curves.
Labor-power might be seen as a stock which can produce a flow of labor. Labor, not labor power, is the key factor of production for Marx and the basis for earlier economists' labor theory of value. The hiring of labor power only results in the production of goods or services ("use-values") when organized and regulated (often by the "management ...
Hazlitt explains how a society solves the problem of alternative applications of labor and capital by using the price system. [3] Prices are determined by supply and demand, and they affect supply and demand. The constant interrelationships of production costs, prices, and profits determine which commodities will be produced and in what quantities.
The ownership and organization of the social means of production is a key factor in categorizing and defining different types of economic systems. The means of production includes two broad categories of objects: instruments of labor (tools, factories, infrastructure, etc.) and subjects of labor (natural resources and raw materials).