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.
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Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co