what is meant by phycical capital? what are the two type of phycical capital write the features of each with example
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The capital which is earned by very hard labour for some money then this type of labour is called physical capital.
2type of physical capital are........
labour and money......
That is my answer.....
Golu sharma...
2type of physical capital are........
labour and money......
That is my answer.....
Golu sharma...
Answered by
1
Heya,
PHYSICAL CAPITAL:-
It is a factor of production which consists of machinery, buildings, tools etc.
Input ----------> Process ----------> Output
Two types of physical capital:-
1) Fixed capital:-
* Includes tools and machines that are ranging from simple to sophisticated ones.
Eg:- Agricultural equipments like hoes to advanced machine like computer.
* These tools and machines can be used over many years and called as Fixed capital.
2) Working capital:-
* Raw materials and money in hand are called working capital.
* As input Raw material is needed.
Eg:- Wheat ----> Bread.
* For buying these raw materials money is needed.
Hope my answer helps you :)
Regards,
Shobana
^_^
PHYSICAL CAPITAL:-
It is a factor of production which consists of machinery, buildings, tools etc.
Input ----------> Process ----------> Output
Two types of physical capital:-
1) Fixed capital:-
* Includes tools and machines that are ranging from simple to sophisticated ones.
Eg:- Agricultural equipments like hoes to advanced machine like computer.
* These tools and machines can be used over many years and called as Fixed capital.
2) Working capital:-
* Raw materials and money in hand are called working capital.
* As input Raw material is needed.
Eg:- Wheat ----> Bread.
* For buying these raw materials money is needed.
Hope my answer helps you :)
Regards,
Shobana
^_^
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