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1

It's a deeper discussion, but you could argue that profits reflect information disparities between agents. However, in the most idealized circumstance, prices themselves arise from scarcity resulting from physical constraints of the system, not informational constraints.


2

The current mainstream theory of value is the subjective theory of value: goods or services have value that people subjectively believe that they have. Rembrandt paintings cost millions because someone subjectively thinks they are worth that much. If there are no market failures the market price captures the subjective value through supply demand ...


0

Adam Smith in his writing defines the nominal as the price of something at a given time counting prices out of market equilibrium. He refers to it as the price at what something is exchanged between two individuals not taking into account general market conditions or particular affairs at given time. It's just the price in monetary terms at what something ...


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