following form:
Exchange value has three conditions, viz.:
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Utility, or ability to satisfy a desire (U).
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Difficulty of attainment (D), according to which there are three classes of commodities.
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Transferableness.
Of the second condition, there are three classes:
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Those limited in supply—e.g., ancient pictures or monopolized articles.
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Those whose supply is capable of indefinite increase by the use of labor and capital.
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Those whose supply is gained at a gradually increasing cost, under the law of diminishing returns.
Of those limited in supply, their value is regulated by Demand and Supply. The only limit is U.
Of those whose supply is capable of indefinite increase, their normal and permanent value is regulated by Cost of Production, and their temporary or market value is regulated by Demand and Supply, oscillating around Cost of Production (which consists of the amount of labor and abstinence required).
Of those whose supply is gained at a gradually increasing cost, their normal value is regulated by the Cost of Production of that portion