Albu's Law is a principle in the field of economics that states that the value of a good or service is determined by the cost of its production. This law emphasizes the importance of production costs, including labor, materials, and overhead, in setting market prices. The law is named after Mihai Albu, a Romanian economist who contributed to the understanding of market dynamics. By focusing on production costs, Albu's Law helps explain why prices fluctuate based on changes in supply and demand, as well as shifts in production efficiency.