CHAPTER XI

THE ULTIMATE RELATION OF COST TO VALUE

§ 1. Net result of English discussion from Smith to Cairnes 127

§ 2. Classification of cost concepts 135

§ 3. Necessary preliminaries concerning the concepts of value and utility 140

§ 4. Essential features of the pure utility theory; the supply of goods taken for granted 146

§ 5. Explanation of the law of entrepreneur’s cost in the light of the utility theory 155

§ 6. The modern refined labor theory—the marginal equivalence of utility and disutility—considered first in the isolated economy 165

§ 7. The relation of marginal subjective cost to exchange value in the developed social economy 177

§ 8. Summary 191