“Machine purchased is always a final good.” Do you agree? Give re… - Vidyadip

Question

“Machine purchased is always a final good.” Do you agree? Give reasons for your answer.

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Answer

No, it is not necessary that machine purchased is a final good. It will depend upon its use.

If a machine is purchased by a household, then it is a final good. For example, washing machine purchased by a consumer household is a final goods.
If it is purchased by a firm for its own use, then it is also a final good. For example, refrigerator purchased by a firm.
If it is bought by a firm for resale, then it is an intermediate good. For example, machine purchased by a machine dealer.

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