What do you understand by the term physical capital?
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The things which are required at each stage of prodiluction is called physical capital ...EG RAW MATERIAL LIKE, MONEY , SEEDS , FERTILIZER,ETC
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Physical Capital is the variety of inputs required at every stage during production. It is of two types: Fixed Capital and Working Capital
Fixed Capital: Tools, machines, buildings, etc., can be used over many years and are called fixed capital.
Working Capital: The raw materials and money in hand is known as working capital. Raw materials such as clay for the potter, yarn for the weaver and money are included.
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