intrinsic
belonging naturally;
essential.
water food shelter
Many things and skills are essential to life and therefore have intrinsic value.
In finance, the intrinsic value of an asset usually refers to a value calculated on simplified assumptions.
Simple assumption: Everyone "needs" food and water to live.
Based on that assumption trading water for food is worth it.
worth
equivalent in
valueto the sum or item specified.
water food shelter
Ok. How much water is a food worth, then?
That depends on how hungry or thirsty both parties are. There is no rule that says things have to have a "fixed value" in order to be valuable.
That depends on how hungry or thirsty both parties are. There is no rule that says things have to have a "fixed value" in order to be valuable.
Yes there is exactly such a rule, for if one party is neither thirsty nor hungry then they have no value. A thing cannot simultaneously have intrinsic value and no value.
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