Question

What do you mean by capital? State the importance of capital in production function.

Answer 1

heyyyy mate......

capital consists of assets that can enhance one's power to perform economically useful work.

Capital is important because it's that part of an asset which can be used to repay its depositors, customers, and other claimants in case the bank doesn't have enough liquidity due to losses it suffered in its operations.

Capital is an input in the production function.

The four factors of production are ----

land

labor

capital

entrepreneurship.

hope it helps.......

plzz mark as brainliest........

Answer 2

Capital is used for the production and growth of any company.

The importance of capital in the production function is to increase the rate of productivity in any company.

How capital is important in the production function?

• The number of laborers and their wages is dependent upon the capital
• The capital like tractors is the fixed capital which is used for a long period
• Raw materials and goods are working capital. They are sold in the market for the production
• The supply of raw material depends upon the capital
• The machinery and tools which are necessary for production depend upon the capital