Definition of Physical capital:
In neoclassical economic theory, factors of production are the inputs required to engage in the production of goods or services in pursuit of profit. Economists generally agree that there are three main factors of production.
Tangible asset that that is created by humans and somehow used in production. Physical capital is often used to refer to economic capital in some form.
Physical capital is one of what economists call the three main factors of production. It consists of tangible, man-made goods that assist in the process of creating a product or service. The machinery, buildings, office or warehouse supplies, vehicles, and computers that a company owns are all considered part of its physical capital.
How to use Physical capital in a sentence?
- The physical capital stored in our warehouse was accounted for in our inventory calculation which proved useful during the meeting.
- When I started my small online business, my physical capital was limited to my computer and Internet connection; I didnt need any other things to get the business up and running.
- 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.
- Knowing the physical capital of your company will let you determine how risky you can be at the current time.
- In economic theory, physical capital is one of the three factors of production.
Meaning of Physical capital & Physical capital Definition