Economy, asked by monishadeka930, 6 months ago

all capital goods are producer goods but all producer goods are not capital goods. why?​

Answers

Answered by himanshi102
1

Because these goods include goods as

1. raw materials by the producer like wood use to make furniture .

2. goods used as fixed asset by the producer,like plant and machinery.

unlike fixed asset of the producers,goods used as raw materials are not durable use goods.

these are single use producer goods these cannot be repeatedly used to make furniture.

fixed asset or capital goods on the other hand,are repeatedly used in the process of production.

These are durable use producer goods.

THUS,while all capital goods are producer goods,all producer goods are not capital goods.

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