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 Form 1 Business Studies online video lessons on production

Features of capital as a factor of production

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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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