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Ivanshal [37]
3 years ago
5

which concept does Adam smith use to describe an item sold for exactly the amount of money it cost to produce it? A, Market pric

e B advance price C natural price D effectual price.
History
1 answer:
yaroslaw [1]3 years ago
4 0

Answer:

<em>Option C. Natural price.</em>

Explanation:

Adam Smith was a Scottish economist, philosopher and author popularly known as the "father of capitalism". One of the economical terms that he defined is the one of <u><em>"natural price",</em></u> that is the price of any commodity that is neither more or less than the cost of production for that same commodity. The natural price has to be the sum of the costs of rent of the land, the wages of the labor and the profits of the stock that brought the commodity into the market, that took place in order for the commodity to be produced.

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