The Main Difference Between a Final Consumer and an Intermediate

question 90

Multiple Choice

The main difference between a final consumer and an intermediate consumer is that:

• A) the final consumer purchases finished products,whereas an intermediate consumer only buys raw materials.
• B) intermediate consumers buy raw materials and sell finished products to final consumers,whereas final consumers use the finished products.
• C) final consumers make more purchases than the intermediate consumers.
• D) unlike final consumers,intermediate consumers provide monetary benefits to organizations by purchasing their products.
• E) final consumers tend to have more bargaining power than intermediate consumers.

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Definitions:

Discount Rate

The Discount Rate is the interest rate that the Federal Reserve charges commercial banks for overnight loans. It influences liquidity and borrowing costs in the banking system.

WACC

Weighted Average Cost of Capital; a calculation of a firm's capital costs, weighted according to the proportion of equity and debt in the firm's capital structure.

Negative Net Present Value

An indication that the projected earnings (discounted back to present value) of an investment will be less than the initial investment cost.

Competitor's Cost

The expenses incurred by industry rivals, which can influence competitive pricing strategies.