Which of the Following Goods Is an Intermediate Good

question 31

Multiple Choice

Which of the following goods is an intermediate good?

• A) lettuce that a restaurant buys to put on sandwiches
• B) tires that a car company buys to put on the cars it produces
• C) a television set that Mai buys to put in her college dorm room
• D) a and b
• E) b and c

---

Definitions:

Long-Run Equilibrium

A state in which a market's supply and demand balance out over time, with all firms earning normal profit and no incentive for new firms to enter or existing ones to exit.

Price Maker

A firm or entity that has the power to influence the price of goods or services in the market due to a lack of significant competition.

Total Revenue

The overall amount of money generated by a business from selling its goods or services before any costs are subtracted.

Elastic Than Industry

A condition or scenario where a particular firm or product has a higher sensitivity to price changes compared to the overall industry.