---
entity_slug: extraordinary_profits
evaluator: null
evaluated_at: '2026-02-23T05:26:47.121412'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes extraordinary profits from ordinary
    profits by specifying they "significantly exceed the common or average profits"
    and identifies specific conditions when they occur. The concept is well-bounded
    and non-circular, though it could be slightly more precise about what constitutes
    "significantly exceed."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text from Book I, Chapter
    10, where he explicitly discusses how new manufactures and unusual demand conditions
    create profits above the common rate. The context accurately reflects Smith's
    argument about competition's equilibrating effects on these exceptional returns.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The placement in "Distribution" domain is correct, as extraordinary profits
    relate to how returns are distributed among different trades and capital investments.
    This fits perfectly within Smith's analysis of profit distribution across different
    economic activities.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental
    adaptation) as it represents market responses to new opportunities and changing
    demand conditions. However, it's somewhat abstract and doesn't clearly embody
    the cybernetic control mechanisms central to VSM thinking.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "The entity provides good explanatory value by illuminating the mechanism\
    \ of market equilibration\u2014how exceptional profits attract competition and\
    \ eventually return to normal levels. It reveals an important structural relationship\
    \ in Smith's understanding of how markets self-regulate through profit signals."
---

# Evaluation: Extraordinary Profits

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes extraordinary profits from ordinary profits by specifying they "significantly exceed the common or average profits" and identifies specific conditions when they occur. The concept is well-bounded and non-circular, though it could be slightly more precise about what constitutes "significantly exceed."

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text from Book I, Chapter 10, where he explicitly discusses how new manufactures and unusual demand conditions create profits above the common rate. The context accurately reflects Smith's argument about competition's equilibrating effects on these exceptional returns.

## domain_placement — 5.0 / 5.0

The placement in "Distribution" domain is correct, as extraordinary profits relate to how returns are distributed among different trades and capital investments. This fits perfectly within Smith's analysis of profit distribution across different economic activities.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental adaptation) as it represents market responses to new opportunities and changing demand conditions. However, it's somewhat abstract and doesn't clearly embody the cybernetic control mechanisms central to VSM thinking.

## explanatory_value — 4.0 / 5.0

The entity provides good explanatory value by illuminating the mechanism of market equilibration—how exceptional profits attract competition and eventually return to normal levels. It reveals an important structural relationship in Smith's understanding of how markets self-regulate through profit signals.
