Commodity value
From Wikipedia, the free encyclopedia
In the field of economics, the commodity value of a good is its free market value under optimal use conditions. In a free market, the commodity value of a good will be reflected by its price.[citation needed]
If an acre of land can yield a net of 100 dollars loss by lying fallow, 50 dollars gain by being planted with corn, and 100 dollars gain by being planted with wheat, then that acre's commodity value is 100 dollars; the farmer is assumed to put his land to best use. The price of a commodity fluctuates around its commodity value.[1]
