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commodity
Also known as basic product, fungible good, commodity good
In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
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~13 min read
Article
12 sectionsContents
- Etymology
- Description
- Characteristics
- Hard and soft commodities
- Commoditization
- Commodity trade
- Commodification of labour
- Commodity super cycle
- History of super cycles
- See also
- Notes
- External links
In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price.