What is Intermediate goods ?

1.	What is Intermediate goods ?
Answer» Those goods which is used to produce final goods are called intermediate goods.For example ; biscuit is said to be final goods but the materials like sugar , wheat etc which help in making biscuit are said to be intermediate goods Intermediate goods are those goods which help in producing final good. Intermediate goods are referred to as those goods that are used by businesses in producing goods or services. These goods are also known as producer goods.In other words, intermediate goods are used for producing final goods or consumer goods or it can be said that they act as inputs in other goods and constitute the final goods as an ingredient.These goods are also called semi-finished goods. Intermediate goods can be used in three ways, which are\tProduced and used for self.\tProduce intermediate goods and sell them to other businesses.\tPurchased by companies for a specific use or for creating another intermediate product. intermediate goods such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them.

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