2. Physical capital is of two types:
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There are two types of physical capital: fixed capital and working capital. Fixed capital includes those assets which can be used over many years in the process of production like machines in factory, building, tools etc
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Physical capital is of two type:- Fixed capital- It includes tools and machines ranging from simple tools like - farmer's plough and machines like - generators, turbines, computers. Actually tools, machines and buildings can be used in production over many years, and are called fixed capital.
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