Which of the following best describes an intermediate good?
A)It has no value to the seller.
B)It has no value to the buyer.
C)It is purchased by a household for future use.
D)It helps produce another good.
E)It is sold at a discounted price by middlemen.

Question

Quizplus · Accepted Answer

An intermediate good is a good used in the production process of another good. It has value to the seller in terms of its contribution to production, but it is not sold directly to the final consumer.

Which of the Following Best Describes an Intermediate Good