A commodity is an economic good

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2020-06-19 17:00:09

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Product   is produced for the exchange of economic benefit. The product has two features: the exchange and use value.

Value

online shopsThis concept is the ability of things to satisfy human needs, i.e. their usefulness. Consumer cost has the following characteristics:

  1. The Usefulness of a good is determined by its properties.
  2. Customer value is characterized by the quality, quantity, natural form.
  3. The Usefulness of a good is the product or service.
  4. It is Necessary to pose the question “is there a need for this product?”.
  5. The Need can be satisfied in several ways.
  6. Product – the common good, and consumer value has a social character.
  7. Consumer cost may not depend on the number of labour.
  8. Consumer price of services has no material form.

the competitiveness of the product'sExchange value

Under a value in exchange mean the ability to exchange things for other things in certain quantities. This is done in case if the goods have different consumer value. Exchange ratio - is the cost of mental and physical abilities of the producers for the production of goods. Things are exchanged according to the amount of labor expended.

Product Classification

All products are divided into two large groups: industrial use, personal consumption.

The Goods of individual consumption can be: a long, short-term use, goods and services exclusive range.

Industrial goods materials and parts, auxiliary materials and services, capital construction.

Key features of the product

industrial goodsProduct marketability – is the ability of tangible and intangible assets to be attractive in comparison with similar products, due to its characteristics and consumer assessments. This property is valued by producers is very high. It depends on whether the product or service traded in the market, and how successfully. In turn, depends on the profit of the company producing the product.

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To improve the competitiveness of goods are taken various measures: quality improvement, marketing activities, including advertising.

The Item is a set of parameters that characterize its competitiveness. They can be divided into:

  1. Characterizing price. This indicators that characterize the economic properties of the goods.
  2. Characterizing the quality, i.e., consumer properties, from which the result is a useful effect. This is a set of “soft” and “hard” performance.

“Hard” indicators are divided into the following groups:

  • Technical – functions and properties of the product, defining its scope, as well as ergonomic and performance;
  • Regulatory – indicators for determining product conformance to international standards, standards that operate in the market.

Item – it is necessary to the life of every thing. He can act different roles, but always created exclusively for human consumption and the satisfaction of his needs.


Article in other languages:

AR: https://tostpost.com/ar/business/22792-a-commodity-is-an-economic-good.html

HI: https://tostpost.com/hi/business/24419-a-commodity-is-an-economic-good.html

PL: https://tostpost.com/pl/biznes/42517-towar---jest-to-ekonomiczne-korzy-ci.html

PT: https://tostpost.com/pt/neg-cios/42096-a-mercadoria-um-bem-econ-mico.html

UK: https://tostpost.com/uk/b-znes/41146-tovar---ce-ekonom-chne-blago.html

ZH: https://tostpost.com/zh/business/47714-a-commodity-is-an-economic-good.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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