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What is the definition of commodity?

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Question added by Elke Woofter , Project Assistant , American Technical Associates
Date Posted: 2014/04/04
kabilan dharmadoss
by kabilan dharmadoss , Qa/qc Mechanical Engineer , Beijing panchina sports

A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade. Any good exchanged during commerce, which includes goods traded on a commodity exchange.

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