| Abstract | This paper constructs a micro-foundation framework for the General Theory of Value by means of consumer-producers’ two-stage decision approach, in which a consumer-producer at first makes his/her production decision to maximize total revenue, and consumption decision to maximize utility thereafter. The difference in our newly amended approach is that we endogenize configuration and structure of division of labor into individual choice behavior but the original doesn’t. In our general equilibrium setting, moreover, not only are market-clearing conditions taken into account, but also allocation condition of labor force between production sectors of restrictive capacities, namely, Equivalent-Rate-of-Comparative- Benefit Principle. In virtue of production functions’ return-to-scale properties and endogenous/exogenous comparative advantage thereof, different division-of-labor systems are defined, and therefore described by this same theory of value which concludes that no matter which kind of division-of-labor system it is, Marx’s Labor Theory of Value is only a special case of ours. |