labor theory of value

labor theory of value definition - business

labor theory of value

The economic theory that the value of any good or service is proportional to the amount of labor consumed in its production and delivery. The labor theory of value was a central feature of economic analysis by Adam Smith and, later, Karl Marx.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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