According to Utility theory, a number of concepts can be implemented in order to define the utility of a product. The pleasure, or the usefulness and the ability to satisfy the needs or wants are important. Neoclassical value theory states that the relative price of the goods and the services can be determined by the marginal rates of the substitution in consumption and the marginal rates incurred during the process of transformation in production which are equal in the condition of economic equilibrium (Lewandowski, 2014).
The primary concept behind this is that in case individual goods possesses a good marginal utility which is lower than another good for which the business can be done, than it depends on the interests of the individual people to effect the trade.
According to Marx, the value of the product is to be considered in terms of labour, labour power sold in the sectors which are deemed to be productive produce higher value. Price of the production is an important concept which involves the price of a product. It may refer to the levels of prices of the goods and services at which the goods or the services which have been produced needed to be sold by the producers so that they can earn an average profit rates on the product.
As per the Marx notion, there are two primary components in deciding the price of the product, the cost price of the production and the gross profit margin which includes the money invested for the production.
As per Marxist concept of price, there are different types of production prices:
The Private or the enterprise production price which forms to be the initial step in the price analysis. This price is one which is equivalent to the cost-price and the profit related to the production capital which can be applied to the new outputs.