Description
Young Alexandria’s father owns a widget factory. She heard her father say that “labor in and of its own is worth nothing”.
Explain to Alex, why this is so. Also, using what you have learned from this week's assigned reading (and your previous chapters), explain to her why the income of the manager of the widget factory (who sits in an air-conditioned office) is much higher than a factory worker who actually produces the widgets.
Explanation & Answer
Attached.
Labor Theory of Value
The explanation that best explains Alexandria’s father’s statement is the fact that the
labor theory for value presents attracts some criticisms. According to the theory, the economic
value of a service or a commodity ...