A product that is the output of one organization and input of another.
Explanation of Solution
The economy has many firms in it, which means that there will be different organizations that produce different types of goods and services that are necessary in the economy. The different sections of the society will have demand for a variety of goods, which is the reason behind the large number of producers and products in the economy. Not all the firms produce the final goods and services that can be consumed directly by the consumer. Some would be the raw materials and some would be the intermediate goods.
There are goods that are actually the output of an organization but still they will be treated as the input of other organization. This includes the organization that produces the spark plugs and electric components. The spark plugs and the electric components are the final output of the firm, whereas the automobile industry, the electronic appliances industry, and so on, makes use of the spark plugs and the electric components for producing their output.
Market: The market is the place where the buyers and the sellers interact with each other and the exchange of goods and services takes place between the buyers and the sellers at a mutually agreed price level between them.
Want to see more full solutions like this?
- challenges that leaders and other decision-makers face in organizational environments that involve different groups of stakeholders.arrow_forwardRefer to image; please show workarrow_forwardPut yourself in the shoes of an executive assistant at a large corporation. It has been a busy morning, and just after lunchtime a salesperson calls and asks to see your boss. Name three things the salesperson could do or say that would make you more willing to help him.arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co