FIXED CAPITAL VARIABLE CAPITAL

27. FIXED CAPITAL
VARIABLE CAPITAL
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.



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.