Respuesta :
The saws, lathes, and drill presses that woodworkers at cedar valley furniture use to produce furniture are called physical capital. Physical capital is one of the three factors of production according to economic theory. Real capital consists of physical, man-made items that businesses invest in or buy and use to make goods.
Physical capital assets that are reusable and not consumed during production, such as furniture, manufacturing equipment, also fall under the category of fixed capital. Factors of production are the inputs needed to produce goods or services in order to make a profit, according to neoclassical economic theory. The degree of diversification in a given industry is determined by the diversification of physical capital.
To learn more about physical capital, click here
https://brainly.com/question/14632161
#SPJ4
