Economic depreciation is the
A) firm's opportunity cost of using its own capital.
B) return that an entrepreneur can expect to receive on average.
C) forgone return on the funds used to buy capital.
D) change in the market value of capital over a given period.

Question

Quizplus · Accepted Answer

Economic depreciation refers to the change in the market value of capital over a given period. This concept captures how the value of capital assets decreases over time due to factors like wear and tear, obsolescence, or changes in market demand.

Economic Depreciation Is the