'Physical Capital' is characterized as the capital that involves 'all the tangible factors or apparatuses employed by a company for the production of the goods.'
As per the question, the option that demonstrates the physical capital required for a business dealing in services associated with installation and services of the car would be:
A). Hydraulic lifts for cars
- The 'Hydraulic lifts' for lifting or moving the cars would exemplify a physical capital as it would be considered as manufacturing equipment.
- This will exemplify a fixed capital that will work for many years and can be reused over and again.
- These are not something that will be exhausted during production and act as a fixed asset for the firm.
Thus, option A is the correct answer.
Learn more about 'Physical capital' here:
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