In the production of sugar, sugarcane is :

A final good

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A capital good

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An intermediate good

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None of these

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Solution

The correct option is C
An intermediate good

Sugarcane is an intermediate good in this situation.

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Similar questions

Explain the basis of classifying goods into intermediate and final goods. Give suitable examples.

Goods that are used as intermediate goods can never be final goods. Defend or refute this statement.

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