Question

how does fixed capital differ from working capital

Answer 1

Heya...

Fixed capital can't be change in short run .....

Fixed capital cost must be given when production is not running....

Fixed capital should be used before the production....

While...

Working capital can be changed during the production...

Working capital labours can be fired when the production is not running ..

Working capital gets it's Wages after the production...

Answer 2

Fixed capital: there are two types of capital in physical capital one is fixed capital. Tools machine range from very simple tools such as farmer's plough to sophicated machine such as generators, turbines, computers etc. Tools, machines can be used in production over many years and they are fixed for many years so they are called fixed capital.
Working capital: raw materials money in hand. Production requires a variety of raw materials such as yarn used by weaver and clay used by potter. Also during production to make payments and buy other materials. Raw materials and money in hand are called working capital.