Comments on: Why are baseball uniforms for a professional baseball team considered an intermediate good?

By: J. S.

J. S. — Thu, 05 Nov 2009 20:45:48 +0000

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.

By: chris n

chris n — Thu, 05 Nov 2009 20:22:34 +0000

but 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.

By: Kyle

Kyle — Thu, 05 Nov 2009 20:09:23 +0000

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.