A capitalist remains wealthy by engaging in small-scale commodity production and using the general formula for capital. This system allows capitalists to accumulate wealth over time. Small-Scale Commodity Production uses the C-M-C model. “C” stands for commodity, which means the goods that people make and “M” stands for money. A person makes a product (“C”) and sells that product for money (“M”) and then uses that money to buy something they need (“C”). In contrast, the M-C-M model uses a buying in order to sell approach. “M” represents the initial amount of money and “C” is the commodity bought. The second “M” indicates the represents surplus value or profit. The primary difference between the two models lies in their outcomes. C-M-C is centered on meeting needs and personal consumption. M-C-M is focused on generating profit through the process of buying low and selling high. The transformation from money (M) into capital (M-C-M’) involves investing into things that generate surplus value. Capitalists invest their earned money into labor and resources into things that lead to profit when they sell the commodities for more than what they spent.

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