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With its origin from primordial Greek values, it was highly developed by Aquinas on basis of argument in opposition to usury. In his view based on the golden rule,…
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Download file to see previous pages... This is the most popular and long lasting pedagogic economic notion and the best example in the combination of both economic and moral arguments that economists based on. Some of the aspects of the concept of just price, such as the production cost and the biased efficacy concept of value continue to be controversial. One group of scholars is for the view that just price concept is purely the modern marketplace price and functions similarly in the competitive environment. While on the other hand another group argues that, the concept does not describe the current market and gives principles that contradict the modern developments in our economies. Traders must reach to an agreement in which both the seller and the buyer will consider it fair (Wilson 56). Thus, the concept of just price, which advocates for mutual benefit, is among the best bequest scholastics to the economic thinking.
The theory plays a vital role in the process of price determination in the current market. Human beings depend on each other and it is therefore morally wrong to exploit others through unfair dealings. On the other hand, traders must understand that the main purpose of creating goods and services is to satisfy human needs therefore, there should be fair rules and regulations to ensure efficient production and distribution of commodities to the people. Every private owner selling something does not only deal with his commodity but also deals with the necessity, which is common to himself and the buyer (Monsalve 7).
There are some circumstances in which the just price theory becomes irrelevant acting in opposition to fairness in the current economies. Some of these include the condition of high number of buyers and shortage of goods and services together with the mode of sales and high sums of money involved. When goods are sold on credit, the number of buyers increases because they will not need cash to buy the goods and there is the risk of damages that must be put ...Download file to see next pagesRead More
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