The main properties of the product are evaluated in the framework of the study of its essence. The main concept in this category is use value. In accordance with this theory, any product is an item designed to satisfy certain needs of people. Therefore, the value of the cost is directly dependent on consumer qualities and product properties.
The main property of goods
Use value is a concept that visually reflects not only the consumer properties of a certain thing, but also its usefulness to people. That is, during the acquisition of a particular product, not only quality is always evaluated, but also the combination of its basic properties, degree of utility, that is, consumer properties. There is a comparison of subjective indicators along with objective ones for any thing or service.
Specialists draw attention to the fact that quality and use value are more comprehensive concepts than utility. This is important to consider. Moreover, the use value of the service is characterized by similar calculation principles and significance.
Category Value
In the framework of existing commodity production, the concept has acquired a special role. In the modern world, it is a kind of carrier of the material plane or the material basis. The goals of production are also guided by it. Therefore, in literature, the notion of social use value for items and services is more common.
This is explained by the fact that in modern mass production, products are produced for mass, and not for their own, individual consumption. The manufacturer does not use his products.
The main link between the stages of consumption and production of objects - this is the social use value. Depending on its features, the process of selling any product in an existing society may change. Based on this, it can be concluded that there is a limited relationship between the efficiency of the production sector and the use value of products, as well as with their quality.
Change in use value
Over time, goods and prices do not stand still - their dynamic change is observed, as well as use value. Within the framework of historical development, the concept of use value has gradually expanded, including all its new components. In parallel with this, the following trends were observed:
- expansion of useful goods;
- increase in the number of consumer values in the form of services;
- the complication of technological processes in the framework of production;
- increased durability and quality indicators of products.
In the modern world, use value is the ability to meet certain needs of people with a particular product. In fact, this is the degree of its usefulness, the ability to realize its mission.
It is important to remember that these concepts often replace each other. But utility refers to a narrower list of product characteristics. This refers to the degree of satisfaction of the wishes of people without taking into account the impact on themselves and their health.
Another feature that the concept of use value acquired in the course of its many years of evolution is the fact that now it is relevant not only for goods, but also for services, as well as for consumer goods and production. That is, now it has become a kind of difference between specific products.
Consumption and exchange value
All economists are unanimous in determining the value of use of goods. But often disputes arise in establishing its specific value. Here, the properties of the product, use value and exchange value play a role.
In accordance with the advanced labor theory, it is assumed a couple of basic properties of any product:
- exchange value;
- use value.
A similar theory of use value was supported by such authoritative figures in history as Aristotle and C. Marx, as well as D. Riccardo and A. Smith, along with other eminent economists of various times.
All of them believe that all the useful characteristics of a product constitute its use value. It is they who determine the ability to satisfy one or more needs for a single individual or their group. That is, any product has its purpose. For example, it can be clothing, food, etc.
Moreover, the use value must certainly be of a social nature. This is expressed in the fact that the product is not made for themselves, but for other people. It can be sold or exchanged.
In today's world, competitiveness and quality characteristics of products, which, in turn, have a direct relationship with use value, are especially valued.
Exchange value
Useful social value is a broad concept. But it does not in all cases characterize a certain object as a commodity. The fact is that, without exception, all goods have a characteristic feature. This is an opportunity to exchange for another product or service. It is this feature that is called in theory the exchange value.
That is, the exchange value refers to the ability of a particular product to be exchanged for other goods.
If the goods have unequal use value, they will be similar in terms of social labor costs. Therefore, social labor is always included in the composition of the value of any product.
In other words, the concept of exchange value was originally laid down as the basis for the exchange of objects. This is a manifestation of their value.
The concept of value and its features
In practice, the definition of value has a number of features. In accordance with the theory, those things for the manufacture of which people’s labor was not used do not have a price. But individually, labor does not endow things with value. Therefore, if something was produced exclusively for personal consumption, it will have no value.
The cost itself has a qualitative as well as a quantitative expression. If the first is a reflection of production relations for various producers, the second combines the usefulness of this product for society along with the need for labor investment during its manufacture.
If we consider the concept of value as relations between producers, then it will act as one of the categories of production. In addition, value is a category of exchange, because in the process of establishing the value of a certain product, one of the most important points is exchange.
Economists pay attention to the contradictory nature of goods. It is expressed in the fact that absolutely all goods are commensurate with each other. Moreover, they are heterogeneous in terms of their quality and fragmented in their affiliation.
Marginal Utility of Goods
Economists who promote marginal utility theory offer a different option for determining value. According to the theory, the price of a product in itself does not reflect its subjective side. It is expressed only in a subjective assessment by buyers. And the general characteristic of all products, their degree of usefulness are the basic basis for the process of their exchange. In this case, in assessing the usefulness of certain material goods, the laws of Gossen are applied. They say that in the course of meeting certain needs of people, saturation with them is observed. At the same time, there is a decrease in utility - the benefit of each next product will be less than the previous one.
But in the course of lengthy research, the adherents of this theory did not manage to identify a certain indicator that could act in practice as a reflection of the usefulness of all goods in society without exception.
To calculate the cost of the product, Pareto introduced relative indicators by which it is possible to determine how much one item is better for end consumers than the second.
The dual nature of the concept
Because of the contradictions in the unity of the concepts of social and individual value, they speak of their dual nature. The main reason for its occurrence lies in the difference between socially necessary and individual labor costs.
Under socially necessary working time, it is customary to understand the period that the production of a certain use value of an item takes. In turn, individual work time is the period that it will take to make a thing from a particular manufacturer.
In any case, the final cost of the goods always depends on the conditions of its reproduction. That is, if a product of similar quality is released, but at a lower cost, then all previous products will cost less, commensurate with the cost of the last goods.
What affects consumer value?
The total value of use value in each case is influenced by a number of factors. First of all, these are:
- labor productivity;
- intensity;
- complexity.
Labor productivity
Under the performance refers to the fruitfulness and effectiveness of certain actions. To measure its value, they rely on the number of use values that are created per unit of time. Even when calculating productivity, it is possible to estimate the time it takes to create one unit of goods.
The higher the productivity, the lower the time costs during the production of a certain number of products. In view of this, their cost will also decrease. Calculate the cost of goods is necessary taking into account this feature.
Labor intensity
The intensity of production is understood to mean labor costs that occur in a certain period of time.
The greater the intensity of labor in a particular case, the greater the volume of output created. This will determine the increase in value per unit of time.
Labor difficulty
Labor is usually classified according to its complexity. It depends on the manipulations performed. So, if an employee does not have a certain special training, then he is classified as simple. If the implementation of a certain manipulation is impossible without prior training, then such work will already be difficult.
Often complex manipulations are presented in the form of simple, but raised to a certain degree. During reduction, complex procedures are transformed to simple ones.
Therefore, in the calculation of the total value of the goods are based on simple labor and its volumes.
