Machine purchased is always a Capital Good Defend or refute.
Machine purchased is always a Capital Good Defend or refute.
Anurag Pathak Changed status to publish December 4, 2023
The given statement is refuted. The end-use of the machine determines whether it is a capital good or not.
For example,
1st Case: Purchase by a household
A machine purchased by a household (say, computer, refrigerator, etc.) is a consumption good (durable good).
2nd Case: Purchase by a Firm
Whereas, if it is purchased by a firm for use in the business, then it is a capital good.
3rd Case: Purchase by a dealer of machine
In another case, if it is purchased by a dealer of machine, it will be considered as intermediate goods as it is purchased for resale.
Anurag Pathak Changed status to publish December 4, 2023
