Question

What is the difference between capital goods and final goods?

Answer 1

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

Also see:

• Difference Between Final Goods and Intermediate Goods
• Classification of Final Goods
• What are Intermediate Goods?