Question

What is physical capital? Explainits types.

Answer 1

Answer:

Physical capital is the input which is used at various stages of production of goods and services. It is one of the factors of production. There are two types of physical capital: fixed capital and working capital.

Answer 2

Answer:

Physical capital consists of tangible, man-made objects that a company buys or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, also fall into the category of fixed capital, meaning they are reusable, and not consumed during the production process.