Economics

Prices of Production

Prices of Production

Theory in Price of Production Karl Marx’s defined as “cost-price + average profit”. It refers to the price levels at which newly produced goods and services would have to be sold by the producers, in order to reach the normal, average profit rate on the capital invested in producing them. A production price for outputs in Marx’s sense always has two main components: the cost-price of producing the outputs and a gross profit margin.