Reply To: Producer Good AND Consumer Good?


Yes, the same item can be both a consumer good and a producer good to the same person at the same time. Your example illustrates this nicely. The classic example is a person using his human effort in a particular task. He can get both direct benefit, the pleasure of the work, and indirect benefit, the income from what is produced. Professional athletes often express such sentiments claiming to play for the love of the game.

There is a general principle involved which is that a person can achieve more than one end with given action. Whether or not a person achieves both a consumptive end and a productive end depends on whether or not the asset he owns generates a capital gain when he sells it. Another example is Jay Leno, who owns a stable of collector automobiles. He loves owning them and probably reaps a capital gain by selling one that he bought previously.