>>Not having to create a profit can drop cost dramatically.

>Your presumotion presumes that people are actually interested in working harder for less

It is even simpler than that, I made no such presumption. You can look at profit as one of the costs of a for-profit business. Profit is sucked out of the business into the owners or shareholders hands. In a non-profit business, the profit can be returned to customers, lowering the cost of the product. All things even though.