| Abstract | There is no value foundation in modern general equilibrium theory of western mainstream economics. An effort trying to develop Marxist theory of general equilibrium has not succeeded too. However, It could be proved that, according to Marx’s labor value theory, there exists one and only one general equilibrium price vector which equates exactly the relevant value vector, under the assumptions of that aggregate profits is equal to aggregate surplus value and aggregate prices is equal to aggregate value of the whole economy. It means that general equilibrium theory could be built on the basis of labor value theory. The paper firstly develops the value system and price system which include technique relations according to Marx’s theory of social gross product of two departments, then proves that there are infinite general equilibrium price vectors in price system, and lastly determines a “standard” price vector from the infinite general equilibrium price vectors and proves that the standard price vector is necessarily equal to the corresponding value vector. |