gcoolie: Why are baseball uniforms for a professional baseball team considered an intermediate good?
There’s a question on my macro econ homework which reads:
6. Which of the following is an intermediate good?
A) the purchase of gasoline for a ski trip to Colorado.
B) the purchase of baseball uniforms by a professional baseball team.
C) the purchase of a pizza by a college student.
D) the purchase of jogging shoes by a professor
The answer is C.. but why? Wouldn’t baseball uniforms be considered a final good? Please help. Thanks.
Answers and Views:
Answer by Kyle
No. The firm does not make money off of the uniforms its players wear. The uniforms are inputs to selling tickets. The spectacle of professional baseball is the final good. Uniforms are intermediate to providing it.
VV Yes, sometimes teams do sell used uniforms, but this is just a way of cutting costs associated with selling tickets.
Answer by chris nbut they are final goods if purchased by me?
I find that to be nonsense. they are final goods. intermediate goods are goods the value is added to to sell the final product. the only case of it being an intermediate good is IF the jersey is used by the team and then later sold. This happens.
Answer by J. S.I want to add to Kyle’s response. The answer is B. If uniforms are sold to fans, then they are final goods and will be included in GDP. However, since professional baseball players use uniforms as an input in supplying a match to spectators, then the cost of these uniforms is already included in ticket prices and will not be included in GDP.
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