What are producer goods ?

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psyproffie | College Teacher | (Level 3) Assistant Educator

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Producer goods is a synonym for intermediate goods. What this means is that producer goods are goods that are used within the manufacturing process to produce other goods.  The key factor to being a producer good is that if items that are producer goods that are used to create the final product are not identified seperately when the final product is finished. 

An example of this would be car parts. Bolts, washers, wires, clamps, and hinges are all parts that are produced by companies and used to build a car.  These are producer goods because while they are used within the building of the car each bolt, washer, and wire is not distinguishable by itself when you are looking at the finished car.

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