Examlex
Identify and discuss the three types of capital.
Depreciation Costs
The allocation of the cost of a tangible asset over its useful life, representing the decline in value due to wear and tear, age, or obsolescence.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or choosing to pursue a particular action.
Accounting Costs
Costs that appear on the financial statements of a company.
Economic Decisions
Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.
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