" machine purchased is always a final good " do you agree ? give reason with example in 500 words . ( expert don't provide any link )
Dear Students,
No. i did not agree with the statement. The Statement is not True. Because Machine cannot be always treated as final goods.
Goods cannot be classified on the basis of its nature but on the basis of their end use. whether the goods are final or intermediate depends on the end use of the product. Machine cannot be always treated as final goods. it can be the capital goods or intermediate goods or any other goods.
For Example : A cloth Manufacturer Purchase a machine to use it in the process of production or to produce cloth (Final goods). so this machine will be termed as capital goods for the cloth Manufacturer . But when the same machine is purchased by the consumer for using it, for the consumer it is Final goods. (e.g Sewing Machine).
Regards.
No. i did not agree with the statement. The Statement is not True. Because Machine cannot be always treated as final goods.
Goods cannot be classified on the basis of its nature but on the basis of their end use. whether the goods are final or intermediate depends on the end use of the product. Machine cannot be always treated as final goods. it can be the capital goods or intermediate goods or any other goods.
For Example : A cloth Manufacturer Purchase a machine to use it in the process of production or to produce cloth (Final goods). so this machine will be termed as capital goods for the cloth Manufacturer . But when the same machine is purchased by the consumer for using it, for the consumer it is Final goods. (e.g Sewing Machine).
Regards.