User:TinghaoQi668/sandbox

From the perspective of a firm, a firm controls the ownership of its capital goods, which are also known as tangible assets as they are physical in nature. Unfinished goods are transformed into products and services in the production process. Even capital goods are not traded on the market as consumer goods, they can be valued as long as capital goods are produced commodities, which are required for production. The total values of capital goods constitute the capital value.

In relation to technological improvements in means of production, new technologies and scientific breakthroughs can rearrange the market structure, create massive economic impact and disrupt the profit pool in the economy. Further impact of disruptive technologies may lead to certain forms of labour power economically unnecessary and uncompetitive and even widening income inequality.

The means of production of the firm may depreciate, which means there is a loss in the economic value of capital goods or tangible assets (e.g machineries, factory equipments) due to wear and tear, and aging. This is known as the depreciation of capital goods.

At the company level, an employee does not control and own the means of production in a capitalist mode of production. Instead, an employee is performing specific duties under a contract of employment, working for wages or salaries.