Economy, asked by vanshikajadon1697, 1 year ago

How are general prices determined according to the classical economists?

Answers

Answered by subhashnidevi4878
0

The price is determined on the basis of cost of production.

Explanation:

The classical approach of price determination as given by 'Adam Smith'

includes the following theories:

Labour theory: Herein, the wages paid to the labourer are considered while determining the price.  

Cost of production theory: Herein, the price is determined on the basis of cost of production.

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