C-M-C: Small-Scale Commodity Production: This represents the economic activity of artisans, farmers, and small producers who create goods (C: commodity) to sell (M: Money) to buy something they need (C). The main goal is use-value, meaning production is driven by necessity rather than profit. for example, A farmer works on his farm to produce vegetables (C), sells them for money (M), and then uses that money to buy food or other necessities (C). 

M-C-M’ represents the capitalist cycle, where money (M) is invested to buy commodities (C) to sell them for a greater amount of money (M’). Unlike small-scale production, which focuses on fulfilling personal needs, the primary objective of this process is to generate profit through surplus value. The difference between M’ (the increased money) and M (the initial investment) comes from the surplus value extracted from workers, as they produce more value than they receive in wages. This cycle allows capitalists to continuously accumulate wealth by reinvesting profits and repeating the process. 

M’ (More Money) represents the profit capitalists gain through the cycle of capitalist exchange, where money (M) is invested to buy commodities (C), and these commodities are then sold for a greater sum (M’). This profit comes from the surplus value, which is the difference between what workers produce and what they are paid. Workers generate more value than their wages, and this extra, unpaid labor time, called surplus labor, is the source of surplus value. Money becomes capital when it is invested in labor power and means of production to generate profit, with the key being the extraction of surplus labor from workers. Capitalists maintain and increase their wealth by using the profits (M’ – M) to reinvest in more production, expanding their wealth over time while paying workers only a portion of the value they create. For example, a company might invest $100,000 (M) to hire workers and buy materials, and after workers produce goods worth $200,000 (C), the company sells them for $200,000 (M’), making a $100,000 profit. This process repeats, continually generating surplus value for capitalists while workers remain dependent on their wages. Thus, capitalism relies on the continuous extraction of surplus value from workers, ensuring that the capitalist class remains wealthy while the working class sustains the system by selling their labor power.