Question

what do you understand by the fixed capital

Answer 1

Fixed capital includes the assets - such as property, plant and equipment - that are needed to start up and conduct business,

Answer 2

Fixed capital includesthe assets andcapital investmentsthat are needed to start up and conduct business, even at a minimal stage. Theseassetsare considered fixed in that they are not consumed or destroyed during the actual production of agood or service but have a reusable value. Fixed-capital investments are typically depreciated on the company's accounting statements over a long period of time, up to 20 years or more.