The Concept of Just Price - Essay Example

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 prices, 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 the 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 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 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 a 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 into consideration all of which renders the theory irrelevant in ensuring fairness in business transactions (Zuniga, par. 18).

The idea of the responsibility of just price that turns the dichotomy cost against need criterion of worth in a vocal idea is both morally relevant. It also compels humans to act in a way that there is a mutual gain between them in all dealings they are involved in and finally the contradiction between the just price theory and the moderate market pricing allows for a supportive market pricing different from aggressive market pricing.