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Adam Smith's Theory of value stated that the value of...

Adam Smith's Theory of value stated that the value of a commodity depended on________

A.

The market price in a free market over a long period

B.

The over-all cost of production of the commodity

C.

The amount of labour expended on its production

D.

Its relative scarcity at any given time

Correct answer is C

Value means the power that goods and services have to exchange other goods and services. The value of a commodity depends on the satisfaction it can provide and the amount of labour used in production.