what is physical capital mention three different types
Answers
THE PHYSICAL CAPITAL IS THE VARIETY OF INPUTS REQUIRED AT EVERY STAGE DURING PRODUCTION. ITS TYPES ARE AS FOLLOWS: FIXED CAPITAL:TOOLS, MACHINES, BUILDINGS CAN BE USED IN PRODUCTION OVER MANY YEARS, AND ARE CALLED FIXED CAPITAL. WORKING CAPITAL: RAW MATERIALS AND MONEY IN HAND ARE CALLED WORKING CAPITAL.
Answer:
Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital.
Explanation:
Physical capital: Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. ... Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.
Physical Capital is the variety of inputs required at every stage during production. Physical Capital is of two types: (i) Fixed Capital: Tools, machines and building etc. are called Fixed Capitals. ... In this way, raw materials and money in hand is called working capital.