Question

State,whether the following statement is true or false"purchase of machinery by a producer is an intermediate good"

1 point

True

False

Clear selection


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Answer 1

Answer:

It's true...

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Answer 2

Answer:

True

Explanation:

True

This statement is true

Because , companies resell the machines they buy to generate money or because more processing is still needed to add value to these products, machines acquired by a dealer of machines are considered intermediate goods.

The demand for intermediate products is generated from the demand for final goods. Final commodities, on the other hand, have a direct demand since they immediately satiate desires.

A manufacturing company's acquisition of a machine is a capital good that will be put to use throughout the production process. The producer's fixed asset in this instance is the machine. When a consumer purchases the identical machine, it is regarded as a finished item (durable-use consumer good).

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