Thursday, September 2, 2010

Distinguishing Between Price and Value

If a book costs $50, is that good value?

Your first response might be “no way!” It seems like a lot of money for a bunch of pages bound together.

If a book costs $2, is that good value?

“Hell, yeah!” That’s a bargain-basement price.

The problem is, the price of those books doesn’t necessarily bear any relation to the value which the books have to you. A textbook packed with useful information for college might be well worth $50. On the other hand, a trashy, badly-written novel might not be worth even $2

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