An Example of an Intermediate Good Would Be

question 213

Multiple Choice

An example of an intermediate good would be

• A)a new car.
• B)a used car.
• C)the rims on a new car.
• D)new rims to replace old rims on a used car.

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Definitions:

Economic Profit

The discrepancy between gross revenue and comprehensive costs, inclusive of both apparent and implied expenses.

Marginal Cost

The supplementary cost associated with manufacturing one more unit of a good or service.

Decreasing Its Output

A strategy or condition where a firm reduces the quantity of goods or services it produces, often in response to lower demand or to increase prices.

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service, critical for determining the optimal level of output for profit maximization.