Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:
A) an installation.
B) accessory equipment.
C) an intermediate good.
D) a shopping good.

Question

Quizplus · Accepted Answer

The heavy machinery is considered an installation because it is a permanent fixture in the company's operations and requires a significant investment of money, time, and effort to install and maintain. It is not considered an accessory or intermediate good because it is essential directly to the company's primary production and is not consumed in the production process. It is also not a shopping good because it is not purchased by end consumers for personal use.

Soprano Manufacturing Acquired Several Pieces of Expensive Heavy Machinery It