Maybe this tool works, maybe it doesn't. We sort of have to develop the habit of classifying producer-surplus-gain ( what people make above the cost of goods a

Maybe this tool works, maybe it doesn't. We sort of have to develop the habit of classifying producer-surplus-gain ( what people make above the cost of goods and services ) into rents and profits, where profits are proportional to "consumer surplus". "Consumer surplus" is the difference between what you pay for something and your reserve price for it. If you'd pay five bucks but get it for three, you have consumer surplus of two bucks. Then and only then can we have even a hope of coherent discussion about "profit making enterprises". But one man's rent is another man's profit; it's all pretty nuanced.