Economic depreciation is
A)the same as depreciation calculated by an accountant.
B)equal to economic profit minus normal profit.
C)the change in the market price of capital over a given period.
D)the deterioration of the physical appearance of a capital.
E)paid in cash.

Question

Quizplus · Accepted Answer

Economic depreciation refers to the decrease in the market value of capital over a period, not to its physical deterioration or accounting depreciation methods.

Economic Depreciation Is