what are captial goods
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Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use.
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Capital Goods:
- Capital goods are goods used by one business to help another business produce consumer goods. Consumer goods are used by consumers and have no future productive use. Capital goods include items like buildings, machinery and tools.
- Examples of consumer goods include food, appliances, clothing and automobiles.Capital goods are mostly fixed assets that are purchased by the producer in order to produce consumer goods; the examples are building, equipment, machinery, furniture, etc.
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