Capital Study islafd
management
CAPITAL
labor
capital
management
A factory is considered capital in the factors of production. Capital is any good that was used to create other goods. Since the factory is not a natural resource it can't be land, since it's not the actual workers within the factory it can't be labor, so it has to be capital.
Labor (L)
capital
land
service
A tow truck is an example of capital.
A farmers tractor is an example of capital.