Distinguish between value in use and value in exchange

Asked by admin @ 17/08/2021 in Economy viewed by 347 People

Explain the difference between value-in-use and value-in- exchange.

Answered by admin @ 17/08/2021

Hello..

Value-in-use is the net present value (NPV) of a cash flow ....
or...
other benefits that an asset generates for a specific owner under a specific use.

and

value In exchange refers to refers to one of four major attributes of a commodity,
... or we can say for example -
an item or service produced for, and sold on the market....

thank you..

☺

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