What is a commodity?

A commodity is defined as a product that is typically mass-produced and intended for sale in a market, primarily to generate profit. Commodities are often standardized, meaning they are interchangeable with other goods of the same type, such as agricultural products (like wheat or corn), mining products (like gold or oil), or manufactured items (like steel or cotton). The essence of a commodity lies in its capacity to be bought and sold in large quantities, making it a key element in trade and economic systems.

The focus on profit generation is central to understanding what distinguishes a commodity from other products or services. While other choices mention aspects like personal use, non-profit purposes, or consumer welfare, these do not capture the primary economic function of a commodity, which is its role in market exchanges aimed at creating revenue. By emphasizing profit, the concept of a commodity aligns with broader economic principles involving supply, demand, and market dynamics.