Characteristics of capital

Characteristics of capital:

(a) Capital is a passive factor of production

(b) Capital is man-made

(c) Capital is not an essential factor of production, that is, Production is probable even without capital

(d) Capital has highest mobility

(e) Supply of capital is elastic

(f) Capital is productive

(g) Capital lasts over time (example, a plant might be in operation for a number of years)

(h) Capital includes present sacrifice (i.e., cost) to acquire future benefits.

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