The main features or characteristics of capital can be described as follows:
1. Man Made
A key feature of capital is, it is made by the effort of man. It is not a free gift of nature like other resources.
2. Passive Factor
It cannot produce anything without the involvement of other production factors like land and labor. So, it is a passive factor.
3. Variable Factor
Capital is mobile in nature. It is a variable factor of production because of its features like portability, divisibility and durability.
4. Depreciation
Another notable characteristic of capital is decrease in its value. Capital depreciates regularly.
5. Elastic Supply
Supply of capital is always elastic. So, it can be increased or decreased as per the requirement.
6. Destructible
Capital is not a permanent factor. It will depreciate regularly and destructed with the passage of time.
