Define intermediate goods and final goods . Can milk be an intermediate good ? Give reasons for your answer. Hint for 2^(nd) Part : Milk purchased by a restaurantis intermediate good because it is purchased for reselling.

Define intermediate goods and final goods . Can milk be an intermediat

1.	Define intermediate goods and final goods . Can milk be an intermediate good ? Give reasons for your answer. Hint for 2^(nd) Part : Milk purchased by a restaurantis intermediate good because it is purchased for reselling.
Answer» Solution :Final GOODS refer to those goods which are USED EITHER for CONSUMPTION or for investment. Intermediate goods refer to those goods which are used either for resale or for further production in the same year.Milk PURCHASED by a restaurant is intermediate good because it is purchased for reselling.

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Define intermediate goods and final goods . Can milk be an intermediate good ? Give reasons for your answer. Hint for 2^(nd) Part : Milk purchased by a restaurantis intermediate good because it is purchased for reselling.

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