Economics

Labor Theory of Value Analysis

Labor Theory of Value Analysis

Labor Theory of Value is an economic theory that stipulates that this value of a great or service is determined by the labor found in its production. The theory was first suggested by Adam Henderson (1723-1790), the inventor of modern economics, and was a vital concept in the particular philosophical ideals of Karl Marx. The labor theory of value suggests that goods which consider the same time frame to produce should cost a similar.