Reply To: Money Costs, Prices, and Alfred Marshall


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.