Question

What are the two types of physical capital? Explain.

Answer 1

Answer:

Fixed capital and working capital

Answer 2

Physical Capital

Explanation:

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. Working capital is the money required to handle the day-to-day running of the company.