Cost of production theories of value
I am working as a gold prospector. I go out one morning to pan for gold. I wade into the icy waters of an Alaskan river and begin the laborious task of sifting through the stones on the river bottom. After ten hours of work I find a single lump of gold, weighing some fraction of an ounce. I throw the lump in the pouch I keep around my neck. I pack up my gear and get ready to head home. But just as I turn away from the river, I hear a hissing noise and then a splash behind me. I turn around and see that the water is steaming in a certain place. I look there and, lo and behold, there is another lump of gold of the same size as the one I prospected: a golden meteorite has fallen from the sky! I grab it from the water and throw it also into my pouch. Now, I head to town to sell my gold to a buyer. When I dump out the contents of my pouch, I can't even recall which lump took ten hours of labor to acquire and which took almost none. Not only that, the buyer doesn't ask! He has n...