Chapter 3 COST OF PRODUCTION AND THE VALUE OF MONEY

Types of cost theory: modern cost doctrine is "money costs" doctrine, and inapplicable to value of money 64

Labor cost: Smith; Ricardo; Ricardo's confession of failure; "real costs" in Senior and Cairnes; Mill's "money-outlay" cost doctrine, and Cairnes' criticism; but "money-cost" has survived 64-67

Because "real cost" doctrine does not square with facts 67-69

"Money-cost" of producing money-metal 69-70

Austrian cost doctrine runs still in money terms, assuming value, money, and fixed value of money 70-71

"Negative social values" as "real costs" note, 71