Multiple choice

If the capital stock is everlasting, depreciation is

  1. low

  2. high

  3. zero

  4. infinite

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When capital stock is everlasting or perpetual, it does not wear out or lose value over time. Therefore, depreciation is zero because the asset maintains its value indefinitely without any consumption or obsolescence.

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