Which among the following are final and which are intermediate products?
(i) A machine purchased for installation in a factory
(ii) Fees paid to the lawyer by a producer
(iii) Milk purchased by a hotel.
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(i) A machine purchased for installation in a factory is a final product because expenditure on machine is investment expenditure.
(ii) Fees paid to the lawyer by a producer is an intermediate expenditure to the producer. It is because the producer buys the services of a lawyer (another producer) for completely using as in production during the year.
(iii) Milk purchased by a hotel is intermediate product to the hotel because it is purchased from another production unit for resale indirectly.