---
entity_slug: extraordinary_profits
entity_type: Element
vsm_system: S2
type_rationale: Extraordinary profits are a specific form of returns on capital that
  exists as a measurable economic stock or outcome, rather than being a process, relationship,
  or abstract principle.
vsm_rationale: Extraordinary profits function as price signals that indicate market
  disequilibrium and attract competition, serving the coordination role of guiding
  resource allocation until profits return to normal levels.
classified_at: '2026-02-23T11:05:55.365884'
---

# Classification: Extraordinary Profits

## Entity Type

Element

## VSM System

S2

## Type Rationale

Extraordinary profits are a specific form of returns on capital that exists as a measurable economic stock or outcome, rather than being a process, relationship, or abstract principle.

## VSM Rationale

Extraordinary profits function as price signals that indicate market disequilibrium and attract competition, serving the coordination role of guiding resource allocation until profits return to normal levels.
