Explain the term physical capital? Mention it's different types of examples
Answers
hello there
the Physical capital consists of those materials which are used for further production of more goods
the example are as follows
tools , woods and other raw material etc
hope so the following answer may help you
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➡️physical capital is one of the major factor of production
➡️ it includes two sub - components :-
(1). :
→capital investments that are required to start the production of goods or services.
→ for example, buildings, machines, tools , ranging from plough to generators , turbines, computers , etc.
→ it can be used for many years.
(2). :
→ Raw materials or money in hand used in the time of production activities are the working capitals.
→ for example, purchasing of raw materials (like seeds) and services required and to sell finished goods.
→ it is used for short term period.