The factor of production that is subject to depreciation is?
Answer Details
The factor of production that is subject to depreciation is capital. Capital refers to the tools, machinery, buildings, and other physical assets used in the production of goods and services. Over time, these assets lose value due to wear and tear, obsolescence, and other factors. This loss of value is known as depreciation, and it must be taken into account when calculating the profitability of a business. Therefore, capital is the factor of production that is subject to depreciation.