Question

Air conditioner purchase by a dealer is a ............. good but an air conditioner purchase by a household is ................ good .​

Answer 1

Air conditioner purchase by a dealer is an intermediate good but an air conditioner purchase by a household is a final good.​

Explanation:

• An intermediate product is not a final product and it is used to produce the final goods.
• In the firms and industries, a final good is formed after passing through many intermediate processes.
• Intermediate goods are also known as partially finished goods or unfinished goods.
• Dealers buy intermediate products to sell them and are purchased by the users.

Answer 2

Explanation:

Air conditioner purchase by a dealer is an intermediate good but an air conditioner purchase by a household is a final good. Explanation: An intermediate product is not a final product and it is used to produce the final goods.