Question

Explain the term Physical capital - Mentain the different types withe examples.​

Answer 1

Physical capital is the input which is used at various stages of production of goods and services. ... 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.

Answer 2

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Physical capital consists of tangible, man-made objects that a company buys or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, also fall into the category of fixed capital, meaning they are reusable, and not consumed during the production process.

There are two types of physical capital: fixed capital and working capital.

Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital.

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