What economic principle does Alfred Marshall discuss in relation to value?

Alfred Marshall is known for his contributions to the field of economics, particularly through his work on the intersection of supply, demand, and value. The correct answer highlights the relationship between cost and utility, which Marshall established as fundamental components in determining the value of goods and services.

Cost refers to the expenses involved in producing a good or service, while utility represents the satisfaction or benefit derived from consuming it. According to Marshall, the value of a product is influenced not only by how much it costs to produce but also by how much utility or satisfaction it provides to consumers. Therefore, these two elements—cost and utility—are crucial for understanding how prices are set in a market economy, illustrating that value is derived when the utility gained by the consumer exceeds the cost of obtaining the product. This balance and interaction are key concepts in Marshall's analysis of economic value.