27. FIXED CAPITAL
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VARIABLE
CAPITAL
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1.
Meaning
It
can be used continuously over a period of time for the production of goods.
2.
Examples
It
includes machinery, tools equipments, land and buildings, etc.
3.
Change in form
It
does not lose its form during production
4.
Durability
It
has longer life. For instance, a building or machinery can last for several
years.
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It can be used only once in the process
of production.
It includes raw materials, fuel. Power\,
lubricants, etc.
It loses its forms during production
process, and transforms in some other good.
It is less durable. For instance, certain
raw materials are perishable.
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FIXED CAPITAL VARIABLE CAPITAL
