ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -These include the traded commodities. They can also include products that are not differentiated from others based on brand, benefits, or other distinguishing features.

Detailed explanation-2: -A commodity is a basic good used in commerce that is interchangeable with other goods of the same type, and these are often used as inputs in the production of other goods and services. Traditional examples of commodities include grains, gold, beef, oil, and natural gas.

Detailed explanation-3: -A commodity is a raw material used in the production process to manufacture finished goods, while a product is a finished good sold to consumers. No value is added to a commodity, which can be grown, extracted, or mined.

Detailed explanation-4: -Commodities and differentiated products are the two ends of the product spectrum. A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company’s product is different than those of its competitors.

Detailed explanation-5: -Agricultural products: Soft commodities. They include crops like coffee, corn, wheat, soybeans, cotton, and lumber. Livestock and meat: Soft commodities. They include live cattle, beef, pork bellies, and milk. Energy products: Hard commodities. Metals: Hard commodities. 28-Jun-2022