1. Production of a Chair:
   • Imagine two chairs made of similar materials but produced under different conditions. One is handcrafted by a skilled carpenter over several days, and the other is made in a factory using automated machinery and less skilled unskilled labour. According to the labour theory of value, the handcrafted chair would have a higher intrinsic value since it embodies more socially necessary labour time in its production.

2. Cake Baking Example:
   • Consider baking two cakes using the same ingredients. One is made from scratch by an amateur using traditional techniques and might take several hours, while the other is produced in a modern bakery that has optimized the process with better tools and technology. The value of each cake would be determined not only by the ingredients but by the amount of labour normally necessary under prevailing conditions. The bakery’s cake might require less labour time on average, illustrating how productivity and technology impact value.

3. Surplus Value in a Factory Setting:
   • In a capitalist factory, workers produce goods like textiles. The wage paid is based on the cost required to reproduce the labour power (i.e., living expenses). However, if a worker produces output whose value exceeds their wage—say by working extra hours or producing more than what is necessary to cover wages—the additional value is considered surplus labour. This surplus is appropriated by the factory owner as profit, which is a central point in Marx’s critique of exploitation under capitalism.

4. Comparative Goods in Different Economies:
   • Consider two similar items produced in different countries, where the technology and methods vary. In a country with less advanced technology, more labour might be required to produce a comparable commodity. Thus, even if the market price differs due to supply, demand, or capital intensity, the labour theory of value emphasizes that the intrinsic value is largely linked to the amount and quality of labour invested, highlighting how differences in social conditions can alter value computations.

These examples illustrate how the labour theory of value uses the standard of “socially necessary labour time” to assess the worth of a commodity, assess profit generation through surplus labour, and offer insights into variations in value across different production methods and conditions.