Which of the following is fixed capital:

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Money

Seeds

Machines and tools

All of these

answer is C.

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Detailed Solution

Machines and tools are fixed capital. Fixed capital is an essential and early step in the production process. It is a significant and long-term investment. Capital is a necessary factor of production, and fixed capital is one part of it. The other part is working capital, which includes the factors required for daily production operations. Money is the working capital, as these short-term investments must be made regularly for production.

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