the commodity altered the fundamental value of the commodity, which was established by the amount of labor consumed in its production. Marx, thus, regarded labor as a commodity, and the distinction between the labor value of a commodity and the utility value of a commodity was critical in an analysis of value employing Marxist theory. Where Adam Smith believed that the factors of supply and demand was major determinants of commodity prices (although the value of labor consumed in their production provided a basis for the determination of value), Karl Marx believed that:
1. The owners of capital paid wages which are determined by the exchange value of labor.
2. The exchange value of labor, in turn, is determined by the socially necessary labor time required to produce workers. The socially necessary labor time required to produce workers is comprised of the inputs required to rear, feed, clothe, educate, and train workers.
3. In return for the exchange value of labor, the owners of capital who use labor gain the utility value of labor. Marx believed that the utility value of labor was greater than the exchang
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