Answer:
Physical
capital is the variety of inputs requires at every stage during production.
It is two different type of physical capital
(i) Fixed capital It can be used in production over
many years. For example tools, generators, buildings, etc.
(ii) Working capital Raw materials and money in
hand is called working capital. Working capital is used up during the
production activity, resulting in finished goods and services required.
Production requires various raw materials like yarn used by the weaver and the
clay used by the potter. Some money is always required during production to
make payments and buy other necessary items.
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