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Posted on 08 Мар 201815

physical capital

physical capital
Home; Adam smith; capital asset; depreciation; durable ; economics; s; non-renewable resource; physical capital; production; service; stock

The production function takes the general form Y=f(K, L), where Y is the amount of output produced, K is the amount of capital stock used and L is the amount of labor used. Usually the value of land is not included in physical capital as it is not a reproducible product of human activity. In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function. In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers, and the like. The others are natural resources (including land), and labor — the stock of competences embodied in the labor force.

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The others are natural resources (including land), and labor — the stock of competences embodied in the labor force. Usually the value of land is not included in physical capital as it is not a reproducible product of human activity. In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers, and the like. In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function. The production function takes the general form Y=f(K, L), where Y is the amount of output produced, K is the amount of capital stock used and L is the amount of labor used.

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