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Question: Where does profit come from? [View All]

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Hannah Bell Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 04:42 PM
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Question: Where does profit come from?
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Imagine a world with 2 "owners" & 20 "workers".

Imagine each of the owners has $100 to "invest".

Each buys $25 worth of raw materials from the other ($15 "rent" cost, $10 labor cost).

Then each one pays their 10 workers $75 to produce 20 widgets.

Imagine everyone needs some access to a widget to sustain their life.


So, at the end of the production cycle, we have:

20 workers with $170 dollars.

2 owners with $30 in cash & 40 widgets that cost $200 to produce, that they'll now attempt to sell at a profit.

Where does the profit come from?

Serious question.


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