which of the following is a feature of capital goods
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- Capital goods are man-made, durable items businesses use to produce goods and services. They include tools, buildings, vehicles, machinery, and equipment. Capital goods are also called durable goods, real capital, and economic capital.
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Complete Questions:
"Write down the feature of capital goods."
Answer:
The features of capital goods are as follows:
- Capital goods refer to the final goods that can be used for the purpose of business investment.
- They usually increase production capacity.
- They are based on derived demands which means the demand for these goods will depend on other products.
- They are marketed from business to business profile.
- The demands for these goods are comparatively low.
- The price determination of these goods is done by companies.
- Companies sell consumer goods, not capital goods. Therefore, this type of product cannot bring direct benefits like consumer goods.
- Example of capital goods is hardware, types of machinery, etc.
- This includes tools, buildings, vehicles, machines, and equipment. Capital goods are durable goods, physical capital, and economic capital.
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