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The Flaw in Marx's Theory of Surplus Value
The concept of marginal utility is a caricature of how price is set in a capitalist economy. Instead, Marx believed that profit came from the surplus of value hours a worker produced by working in a factory for longer than what it took to make the means of subsistence. However, he made a mistake by assuming that a worker's utility was derived solely from their need to make a living, ignoring the additional benefits they received from being employed in a factory.