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Suppose Pippi Buys an Oven for Her Pizza Parlor for $100,000

Question 30

Multiple Choice

Suppose Pippi buys an oven for her pizza parlor for $100,000. Pippi's pizza tasted so pitiful she went out of business 12 months later. She was able to sell the pizza oven for $75,000. This decrease in the value of the oven is


A) the total implicit rental rate on the oven.
B) an economic loss.
C) economic depreciation.
D) interest forgone.

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