M (Money) → C (Commodity) is the first step where the capitalist starts with money (M) and buys a commodity (C). This commodity could be raw materials, tools, or labor power. The capitalist does not buy commodities for personal consumption, but to resell them later at a profit. The capitalist sells the commodity they bought (C) to someone else for more money, resulting in M.’ A small-scale commodity production is represented by C (Commodity) → M (Money) → C (Commodity). The value of what they sell is the same as what they buy. This is about meeting personal needs and not about making a profit. In C-M-C, you are just exchanging goods for what you need. No profit is made. In M-C-M,’ the goal is to make a profit. The capitalist buys something and sells it for more money than they spent. In M-C-M,’ the profit or surplus value comes from the workers who produce more value than they are paid for. The capitalist makes money by paying workers less than what their work is worth. Money turns into capital when it is used to buy things that will generate more money. The capitalist buys workers and materials, and through the production process, they sell what they made for more money than they spent. This is how they get richer. Workers create surplus value through surplus labor. The time workers spend to produce goods equal to their wages. Surplus labor is the extra time workers spend working beyond what they are paid for. This extra work creates more value, which the capitalist takes as profit. The difference between C-M-C and M-C-M’ is that in capitalism, the goal is to make a profit. The capitalist buys labor and materials, and through surplus labor, they make more money than they spent. This is how they keep increasing their wealth.