The utility that is created when rubber is converted into a tyre (suggest an economic term for the given statements)
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Answer:
an economic term suitable for given statement is "addition of value after manufacturing/processing"
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Value addition is a term that could refer to the utility created when rubber is converted into a tyre.
Explanation:
Rubber is a raw material. The raw material undergoes a manufacturing process in which it is converted into a tyre.
Here, there's a difference between the values of the initial raw material and the finished tyre. This gap is called value addition.
Value addition increases the utility value of raw material. Here, the utility value of rubber is increased when it's converted into a tyre.
Hence, the economic term for the statement can be value addition.
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