Examlex
Einstein's formula,E = MC²,demonstrates the relationship between
Capital
The total value of assets owned by an individual or firm—physical assets plus financial assets.
Opportunity Cost
The cost of the next best alternative foregone as the result of making a decision.
Depreciation
The reduction in the value of an asset over time, often due to wear and tear or obsolescence.
Implicit Cost
The opportunity cost equal to what a firm must give up or forgo in order to use resources in its own operations, not directly paid in money.
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