What is the difference between capital goods and final goods?
The differences between capital goods and final goods are as follows:
BASIS OF DIFFERENCE |
CAPITAL GOODS |
FINAL GOODS |
PRICING |
Costlier in comparison to consumption goods |
Comparatively cheap |
DEFINITION |
Capital goods are those goods that have a future use and are used for the production of consumption goods |
Final goods are those goods that are used by the consumers and have no use in the future. |
DEMAND |
Demand for capital goods is comparatively less |
Final goods have high demand |
PURPOSE |
Capital goods are purchased for the manufacturing of consumer goods |
Final goods are purchased in order to fulfill personal consumption needs |
TARGET MARKETING |
Manufacturers |
Consumer |
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