Reply To: Money Costs, Prices, and Alfred Marshall

#18117
jmherbener
Participant

It would be worth the present value of the future revenue stream generated by its contribution in satisfying consumers. In your example, that is currently $10 million (before reaching the ERE). In the ERE if the mall had a price of $10 million, then the factors of production used to build such a mall would have a value equal to $10 million discounted by the appropriate rate of interest.