The subjective utility of individuals—both of consumers and producers—alone (a “monistic causal explanation”) determines how much productive energy and savings will go into producing goods (i.e., size)—both total size and specific sizes.
“The price of the final product is determined by the valuations and demands of the consumers, and this price determines what the cost will be.”
“Costs of production, then, are at the mercy of final price, and not the other way around. It is ironic that it is precisely in the ERE that this causative phenomenon should be the clearest.”
Related:
- 3-1a4b7 The monetary account will increasingly explain the world—especially as it pertains to the human actions—though never exhaustively
- 11-1d There is no objective risk
- 13-4d2 There is no objective value
- 13-4d4 Value is subjective
- 13-4d5 Prices are derived from subjective values
- 13-7 Value scales consist of specific units, and associated subjective utilities
- On the irony of the ERE (evenly rotating economy)