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In economic theory, physical capital is one of the three primary factors of production, also known as inputs in the production function.
The others are natural resources (including land), and labor — the stock of competences embodied in the labor force.
In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers, and the like.
The production function takes the general form Y=f(K, L), where Y is the amount of output produced, K is the amount of capital stock used and L is the amount of labor used.