Features of capital as a factor of production
Answer Text: Capital.-Refers to man made resource used in production of goods and services or the goods produced for the purpose of producing other goods and services.(capital/producer goods).Features of capital.-It is subject to wear and tear(depreciation). It reduces in value with usage or time-It’s a basic factor of production. Capital must compliment other factors of production-It can be improved through innovation and technology.-Its supply is under man’s control, since it comprises of man made resources.- The reward of capital is interest.
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