Definitions for Physical capital

This page provides all possible meanings and translations of the word Physical capital


  1. Physical capital

    In economics, physical capital or just 'capital' refers to a factor of production, such as machinery, buildings, or computers. The production function takes the general form Y=f, where Y is output, K is capital stock and L is labor. In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function. The others are natural resources, and labor — the stock of competences embodied in the labor force. "Physical" is used to distinguish physical capital from human capital and financial capital. "Physical capital" may also refer to fixed capital, any kind of real or physical asset that is not used up in the production of a product, as distinguished from circulating capital.

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"Physical capital." STANDS4 LLC, 2015. Web. 26 Nov. 2015. < capital>.

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