A(n) good or service is used to build or make another product that will be subsequently sold.
Question
A(n) good or service is used to build or make another product that will be subsequently sold.
Solution
The concept you're referring to is typically known as a "producer good" or "intermediate good."
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Producer Good: This term encompasses goods that are used in the production process to create finished products. For instance, machinery, tools, and raw materials fall under this category because they are necessary for manufacturing other goods.
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Intermediate Good: This term specifies goods that are used in the production of final goods. For example, steel used in the production of cars or fabric used to make clothing.
In summary, both producer goods and intermediate goods are vital in the supply chain, contributing to the manufacturing of products that reach consumers. Understanding these concepts is crucial in economics and business as they affect production processes and supply chains.
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