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Factors of Production, Capital

automobile company, private businesses, intermediate products, factories, cars

Capital includes buildings, equipment, and other intermediate products that businesses use to make other goods or services. For example, an automobile company builds factories and buys machines to stamp out parts for cars; those buildings and machines are capital. The value of capital goods being used by private businesses in the United States in the late 1990s is estimated to be more than $11 trillion. Roughly half of that is equipment and the other half buildings or other structures. Businesses have additional capital investments in their inventories of finished products, raw materials, and partially completed goods.



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automobile company, private businesses, intermediate products, factories, cars, raw materials, structures, machines, example, United States, parts, equipment, services

 
 

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