Final answer:
The crucial capital investment for starting a free-range poultry farm is the initial stock of chicks and eggs. This is part of the physical capital necessary for farm production, alongside land, water, and agricultural technology.
Step-by-step explanation:
When starting a free-range poultry farm, one essential capital investment is the chicks and eggs to start the population. This is because the physical capital components such as land, water, and seeds and the technology used for production are crucial for the generation of outputs such as eggs and poultry meat. The combination of these elements, along with other necessary resources and infrastructure, contribute to the overall productivity of the farm.
Factors like the quality of labor (human capital), physical capital (which includes resources and infrastructure like roads, electricity, water), as well as technology, significantly affect production capabilities. Ground-nesting birds like chickens require immediate care after hatching, therefore ensuring a proper initial population is vital for the farm's success. Additionally, it's crucial to have a system in place for efficiently raising and maintaining this population, which ties into both human capital and physical capital investments.