What are the importance of Fixed Capital and Human Capital for an industry?
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it is very imp. industry develop .economy increase
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IMPORTANCE OF FIXED CAPITAL AND HUMAN CAPITAL FOR AN INDUSTY IS--
=>Capital may be classified into fixed capital and working capital. Fixed Capital is durable-use producer goods which are used in production again and again till they wear out. Machinery, tools, railways tractors, factories etc., are all fixed capital.
#1--Fixed capital does not mean fixed in location. Capital like plant, tractors, and factories are called fixed because money spent upon these durable goods, remains fixed or unrealised for a long period in contrast with the money spent on purchasing raw materials which is recovered as soon as goods made with them are sold.
#2--Working Capital, on the other hand, are the single-use producers’ goods like raw materials, fertilizers, goods in process and fuel. They are used up in a single act of production. Moreover, money spent on them is fully recovered when goods made with them are sold in the market.
=>Capital may be classified into fixed capital and working capital. Fixed Capital is durable-use producer goods which are used in production again and again till they wear out. Machinery, tools, railways tractors, factories etc., are all fixed capital.
#1--Fixed capital does not mean fixed in location. Capital like plant, tractors, and factories are called fixed because money spent upon these durable goods, remains fixed or unrealised for a long period in contrast with the money spent on purchasing raw materials which is recovered as soon as goods made with them are sold.
#2--Working Capital, on the other hand, are the single-use producers’ goods like raw materials, fertilizers, goods in process and fuel. They are used up in a single act of production. Moreover, money spent on them is fully recovered when goods made with them are sold in the market.
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