Question

what do you mean by physical capital

Answer 1

In economics, physical capitalrefers to a factor of production (or input into the process of production), such as machinery, buildings, or computers. In economic theory, physical capitalis one of the three primary factors of production, also known as inputs production function.

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Answer 2

Physical Capital is the variety of inputs required at every stage of production. It is of two types:

Fixed Capital: Tools, machines, buildings and all can be used over many years and are called fixed capital.

Working Capital: Raw materials and money in hand are known as working capital. Raw materials can be explained such as yarn for the weaver, clay for the potter and many more.

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