All machines are not capital goods …
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Posted by Bhavuk Tiwari 2 years, 9 months ago
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Preeti Dabral 2 years, 9 months ago
The end-use of the machine determines whether it is a capital good or not. Capital goods are those fixed assets of the producers which are used in the process of production for several years and which are of high value. Therefore, only those machines which are used in the process of production are considered to be capital goods. Those machines which are used by the households are not capital goods. For example, Computer used at home is a durable-use consumer good, but a computer used in the computer coaching class is a capital good.
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