1. Capital goods are those goods: (a) which are used in the production process for several years (b) which are used in the production process for few years (c) which involve depreciation losses (d) both (a) and (c)
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Answer: Capital goods are those goods that are used in the process of production for several years and are of higher value. These goods are fixed assets of the producers. the Use of these goods leads to depreciation. Example: Plant and machinery.
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which is used in the production process for several years
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