[RyanCavanaugh]

You've confused fundamental value with fundamental cost. A hand-knit sweater will not necessarily (or even usually) fetch a selling price equal to the input value of the labor that went into it.

There are many endeavors which produce goods whose market-clearing price is below the value of effort required to produce them.

[mywittyname]

Houses are a good example. When land is plentiful, the cost of a house is usually a slight discount over what it would cost to build a similar one for new.