commodity value
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File:April 2013 to March 2014 Import commodities from India, by percent value in US$.png
In the field of economics, the commodity value of a good is its free market value under optimal use conditions. In a free market, the commodity value of a good will be reflected by its price.{{cn|date=January 2023}}
Example
If an acre of land can yield a net of 100 dollars loss by lying fallow, 50 dollars gain by being planted with corn, and 100 dollars gain by being planted with wheat, then that acre's commodity value is 100 dollars; the farmer is assumed to put his land to best use. The price of a commodity fluctuates around its commodity value.{{cite book |title=Consumption and Management: New Discovery and Applications |last=Wu |first=Bingxin |year=2011 |publisher=Elsevier |isbn=9781908818072 |url=https://books.google.com/books?id=pIpwAgAAQBAJ}}
Currency
A commodity value expressed as a price is determined by historical, social and cultural aspects of production and distribution.{{cite book |title=Material Culture in America: Understanding Everyday Life |last=Sheumaker |first=Helen |author2=Shirley Teresa Wajda |year=2008 |publisher=ABC-CLIO |isbn=9781576076477 |page=299 |url=https://play.google.com/store/books/details?id=JjVlAzj9qDQC |accessdate=3 January 2017}} Karl Marx described price as the money-name for the labour realised in a commodity.{{cite book |last=Marx |first=Karl |author-link=Karl Marx |url=https://play.google.com/store/books/details?id=sxQl44nJmjwC |title=Capital: A Critique of Political Economy - The Process of Capitalist Production |publisher=Cosimo, Inc |year=2007 |isbn=9781605200064 |page=114 |accessdate=3 January 2017}} A commodity value is dependent on its utility.{{cite book |title=The Value of Money |last=Anderson |first=B. M. |year=1922 |publisher=Ludwig von Mises Institute |isbn=9781610162777 |page=15 |url=https://play.google.com/store/books/details?id=PzrKq7x06MQC |accessdate=3 January 2017}}
Because money becomes valuable not due to its substance, that is, its commodity value, but rather because of its performance, currencies tend to become token.{{cite book |title=Nature, Choice and Social Power |last=Schoenberger |first=Erica |year=2014 |publisher=Routledge |isbn=978-1135051587 |page=98 |url=https://books.google.com/books?id=TO5TBAAAQBAJ |accessdate=4 January 2017}}
See also
{{Portal|Business and Economics}}