Answer :
Spots, inc. produces ink and sells it to write on target, which makes pens. the ink produced by spots, inc. is called an intermediate good.
An intermediate good is a good which is produced by a certain firm which is then used as an input for the production of another goods.
These type of goods is usually traded between the different firms and also serves as a resource to produce a final good, that means , a product which is ready to consume and is sold in the market.
Some intermediate goods can be considered as final goods, for example sugar can be purchased directly by the consumers or it can be used to produce jams.
To know more about intermediate goods here:
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