A farmer produces oranges and sells them to fresh juice, which makes orange juice. the oranges produced by the farmer are called

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Case Hampton

Business

23 October, 05:24

A farmer produces oranges and sells them to fresh juice, which makes orange juice. the oranges produced by the farmer are called

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Herp Derp · Answer 1

A farmer produces oranges and sells them to fresh juice, which makes orange juice. The oranges produced by the farmer are called intermediate goods.

Intermediate goods are also known as semi-finished goods, which is obvious in this case. So the farmer doesn't only sell oranges, he uses them to create the finished product, which is orange juice. Oranges are just intermediaries towards creating the juice.