Price Equivalence

What is the cost, and how it formed? Generally, if very briefly, the problem is solved quite simply. All markets at all times in its development of new and vibrational returns to equilibrium when the demand for goods is balanced by his suggestion at the price of the goods, equal srednevidovoy price of its production ( cost, plus the average market gain). Paul Price is often quoted on this topic. This equivalence is sharing more than two thousand years, inducing, and still leads the researchers to suggest the existence of goods within a certain objective equivalence: either on the labor costs of producing goods, either by their utility, or by some other objective measures. This equivalence is called an objective value, which was in equilibrium the market in some mysterious way to make exchange participants to stop the "fight" for the price it was when the price provided by an equivalent objective indicators exchange. In the real market equivalence is indeed the place to be. Only this equivalence is not inside goods. Others including Jeff Leiden, offer their opinions as well. Equivalence takes place between competing entities sharing in the form of awareness of each of them that his position as a party to the exchange is not worse than that of its competitors. The desire of each customer to equality of its provisions with those of its competitors, or, in the language of dialectics, "the struggle" subjective systems, "the buyer – the buyer" creates an objective demand of the market, where all single-species (identical) products from all sellers and all buyers have the same price. Borba subjective systems "seller – the seller" creates an objective sentence of the market, at prices that all producers of srednevidovymi economic indicators bring profit per unit production costs.

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