I've been reading about final goods and commodities and some links



mention that final goods are commodities. However, that is contradictory with commodities' property of substantial fungibility, which is "the market treats instances of the good as equivalent or nearly so with no regard to who produced them". What am I missing here?

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    $\begingroup$ Are you saying that your rosegold colored iPhone X with 256 GB storage is better than my rosegold colored iPhone X with 256 GB storage ? $\endgroup$ – Giskard Apr 16 '20 at 9:54
  • $\begingroup$ Oh, I wasn't thinking like that. The wikipedia link states "A microwave oven or a bicycle is a final good", so if our smartphones are final goods, for example, they may be different because of different brands, e.g., yours is from Apple, mine is from Samsung. $\endgroup$ – Enzo Nakamura Apr 16 '20 at 9:59
  • $\begingroup$ Oil is a commodity, yet there are also variants of it? The same is true for precious metals, etc. $\endgroup$ – Giskard Apr 16 '20 at 10:00
  • $\begingroup$ For me it's more understandable if you consider things such as petroleum, diamond, gold as commodities, because they are chemically the same. You can't say a diamond extracted from company A is worth more than that from company B. They are simply diamonds. $\endgroup$ – Enzo Nakamura Apr 16 '20 at 10:05
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    $\begingroup$ commodity is being used in two different senses. The first is a broad meaning as a particular instance of goods and services. The second is narrower for bulk goods for which a single price is commonly quoted $\endgroup$ – Henry Apr 16 '20 at 11:36

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