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| 1. |
Distinguish between intermediate products and final products . Give examples. OR Explain the basic of classifying goods into intermediate and final goods . Give suitable examples. |
| Answer» Solution :INTERMEDIATE PRODUCTS :Intermediate product are the raw materials used in the production of finished GOODS and services .These Goods are either used for resale. ÂFor e.g : Cotton bought by a textile MILL for making cloth is an intermediate product.In making cake intermediate products used are cake flour, SUGAR, cocoa powder, butter. ÂFINAL PRODUCTS :Goods which are ready for consumption or capital FORMATION by the final users. These Goods are neither used for resale. ÂFor e.g : cotton bought by consumer for their personal USE is a final good.Oil , sugar ,salt bought by consumer for final consumption. | |