The M-C-M’ equation is a representation of capitalism. Initially, M refers to the value of a commodity that enters the production system with constant capital (machinery, buildings, materials), and variable capital (wages and salaries for the labor force). This input of capital is used to produce M’ commodities with a resulting value higher than the initial value of the merchandise.
In this equation, the capitalist introduces capital to create a production system that results in an increasing value of the resulting M’ commodities. The rate of increase in the value of M’ may be growing due to the so-called Productivity by Surplus Value and Surplus Labor. This refers to the application of certain productive techniques on the Labor Power, where the capitalist exerts pressure on workers to use more physical and mental effort to increase the number of units of production in less time. Additionally, a scientific strategy for the use of constant capital is studied to ensure efficiency. These efforts combined translate into a growing amount of capital that produces wealth and can be reinvested in the same productive system for more M’ goods and new investments, which mean more capital.