Which of the following is an example of an intermediate good or service? A

Marketing Dec 22, 2020

Which of the following is an example of an intermediate good or service?

A. Sarah bought a Sony HDTV,

B. Mike bought Puma shoes,

C. Air Canada buys Boeing aircrafts,

D. Samsung buys compressors for manufacturing refrigerators.

Expert Solution

The correct option is D. Samsung buys compressors for manufacturing refrigerators.

Explanation:

An intermediate good is an item sold by a seller to another seller who uses this item as a raw material in a specific commodity's production process. Such goods are also known as semi-final commodities. Here, Samsung purchases compressors, not for the final consumption, as it is used to manufacture refrigerators.

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