Human capital is the chefs' knowledge, and physical capital includes the kitchen equipment in a restaurant.
Human capital: The chefs' knowledge about preparing food at a restaurant would be considered human capital. This refers to the skills and education embodied in the workforce that make them productive.
Physical capital: The equipment in the kitchen of a restaurant, such as the ovens and stoves, would be classified as physical capital. These are the machines and production facilities used in the production process.
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