chapter  80
5 Pages


To the extent to which the state computes by exchange value in its private and administrative enterprises, it is obviously guided strictly by the economic principle like any other entrepreneur. The highest net yield is sought. This may be ascertained by a numerical comparison of the costs incurred and the utility secured. However, it is perfectly evident that there is no violation of economic principle if the state in these enterprises, rather than reckon by exchange value, in exceptional cases considers the simple social use-value. In every such instance the state would arrive at its decision with a view to that result which under the given conditions it regards as the highest possible.