Producers goods and consumer goods are two broad categories of goods produced and consumed in an economy. Here are ten differences between the two: Definition: Producers goods are goods that are used by businesses or producers to produce other goods or services, while consumer goods are goods that are used by individuals or households for personal consumption. Purpose: The purpose of producing producer goods is to facilitate the production of consumer goods, while the purpose of producing consumer goods is to meet the needs and wants of consumers. Demand: The demand for producer goods is derived demand, i.e., it depends on the demand for consumer goods, while the demand for consumer goods is direct demand, i.e., it depends on the wants and needs of consumers. Value: Producer goods have no value in themselves, but they add value to the final product, while consumer goods have value in themselves. Durability: Producer goods are usually durable, as they ...
Comments
Post a Comment