22 Pages

production or eventually,

The explanation related to their cost of production or eventually, according to a subsequent variation of terminology, to their cost of reproduction. If a commodity is not, generally speaking, an object of production in the ordinary sense (as, for example, certain natural products), or cannot be produced or reproduced (pictures by old masters), or if, finally, its manufacture is the result of a natural or legal monopoly, then we must still content ourselves with the thesis that the price is determined by supply and demand. For the majority of goods, on the other hand, which can in practice be reproduced in unlimited quantities under free competition, costs of production would, as has been said, determine the average or “ natural” price, about which the market price always oscillates.