Hence the value of that specific good was entirely derived from the value of the product it helped make. Ricardo stressed, for instance, that it was the price of wheat that determined the rent of land and not rent that determined the price of wheat. In the same vein, it is the demand for houses that determines the value of residential land. As costs are sacrificed values it should become clear that cost only occurs when the decision to make the sacrifice has been enacted. Once that happens, the cost is sunk , it is irretrievable and it is ephemeral.
Costs are therefore displaced values.
In fact, neoclassical economics is schizophrenic when it comes to cost, values and prices. This dichotomy is totally untenable. Utility always determines price which in turn determines costs. Reflecting on the nature of cost should start to make it clear why price controls are not only futile but dangerous. Finally, we should bear in mind that commonsense thinking, though absolutely essential for everyday living, is totally unsuited for scientific discourse.