Answer: Option (D) is correct.
Explanation:
According to the economists, physical capital refers to a factor of production that is used in the production of goods. Physical capital includes tangible goods and man made products that assist in the production of new products. Examples of physical capital are as follows:
(1) Machinery
(2) Computer
(3) Building
(4) Warehouse
All these are considered as the physical capital that a firm used in the production process.
Therefore, if a firm purchases an equipment for their production, is considered as a physical capital.
