The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.
Those materials which can be used in production over many years are called FIXED CAPITAL .
It is a type of PHYSICAL CAPITAL.
for example, Tools, machines and buildings range from very simple tools such as a farmer's plough to sophisticated machines such as generators, turbines, computers, etc.
Other type of PHYSICAL CAPITAL is :-
Working Capital
this means raw materials and money in hand, Production requires a variety of raw materials such as the yarn is used by the weaver and clay used by the potter.
also, some money is always required during production to make payments and by other necessary items.
Answers & Comments
Answer:
The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.
Answer:
fixed captial
Explanation:
Fixed Capital
Those materials which can be used in production over many years are called FIXED CAPITAL .
It is a type of PHYSICAL CAPITAL.
for example, Tools, machines and buildings range from very simple tools such as a farmer's plough to sophisticated machines such as generators, turbines, computers, etc.
Other type of PHYSICAL CAPITAL is :-
Working Capital
this means raw materials and money in hand, Production requires a variety of raw materials such as the yarn is used by the weaver and clay used by the potter.
also, some money is always required during production to make payments and by other necessary items.