Economy, asked by natasha17644, 9 months ago

Is machine always a capital Good

Answers

Answered by Nandith1
0

Answer:

no it can get destroyed after usage for a long period. therefore it is not a capital good.

Answered by viratgraveiens
1

The categorization of machine as a capital or consumer/final good depends on its commercial usage or utility.Hence,it cannot be permanently or universally considered as capital good

Explanation:

If the machine is used by any manufacturing firm or company for production of goods and services,then it will be considered as a capital or physical factor or input of production as it is essentially being used as a productive input or resource used in the production process.On the other hand,if the machine is purchased by any consumer or buyer for final use or utilization,then it can be identified as an example of final or finished good as it is not being used for any further productive purposes to manufacture any good or service and is only meant for final use by the consumer or the buyer.Therefore,machine is not always or permanently a capital good.

Similar questions