explain the meaning of physical capital .
explain its two type with the help of suitable examples
Answers
Answer:
Physical capital refers to the resources that are used for production. Raw material and money in hand are working capital that get used up during the production process. Fixed capital refers to buildings and tools that can be used over for years.
Hope it helps you mate..
Answer:
Physical capital refers to assets, such as building, machinery, and vehicles, which are owned and employed by an organisation. Physical capital constitutes one of the factors of production other than land and labour. The assets constitute fixed capital means that they are not consumed in the process of production.
Physical capital is divided into two types they are: I) Working Capital : Raw materials and money at hand are called working capital. II) Fixed Capital: Tools, machines and building etc. are called Fixed Capitals.