Question

Sugarcane used in the production of sugar is an intermediate good or final good ?

Answer 1

The sugarcane used in the production of sugar is an intermediate good.

• intermediate goods are the items that are the final product of a process but are also used as an input in the process of producing various other goods.
• For example, sugar is consumed both directly and in the processing of foodstuffs or thread used  in a cloth mill are examples of intermediate goods.
• Thus,  sugarcane used by a sugar mill for production of sugar is an intermediate good.

Answer 2

Sugarcane used in the production of sugar is an intermediate good.

Explanation:

• Sugarcane is used in the sugar industry in sugar mills in order to produce sugar.  

• They are a part of intermediate goods which are partially finished.  

• Hence are used as inputs in the production of the final good.  

• They are resold among industries. They are not counted in the GDP of a nation.

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• brainly.in/question/18158591 answered by qwpenguin.