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kartik_santhanam 1:00 pm on February 9, 2010
The following are characteristics of a commodity
- indifferentiable (cannot be distinguished)
- reasonably high volume of trade
- price driven primarily by demand and supply and not by value additions alone
Hence, commodity need not always be unprocessed products.
even value added products with
-a significant amount of volume
-& and not much value differences between competing products
will be commodities
Say for example, even unleaded oil or bulk drugs