Concept:Depreciation is the loss in value of an asset over time due to wear and tear, usage, or obsolescence.
It applies mainly to produced goods used in production, not to natural resources or human abilities.
Explanation:Among the four factors of production, capital includes tools, machines, buildings, and equipment.
These physical assets lose value through constant use and the passage of time.
For example, a delivery van used by a business decreases in value every year.
Land is a natural resource and is generally not subject to depreciation.
Labour refers to human effort, and an entrepreneur provides ideas and risk-taking; neither depreciates like physical capital.
Therefore, the factor of production prone to depreciation is capital.
Answer:A. capital