A loss in value as the result of the market's response to an item, rather than a deterioration of the item's physical condition, is A) functional obsolescence. B) external obsolescence. C) environmental destruction. D) deferred maintenance.

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20-01-2022
Business

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A loss in value as the result of the market's response to an item, rather than a deterioration of the item's physical condition, is A) functional obsolescence. B) external obsolescence. C) environmental destruction. D) deferred maintenance.

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jayilych4real jayilych4real · Answer 1 · 2022-02-02T10:57:46+01:00

Functional obsolescence has to do with loss in value of a market due to the market response of a good.

What is Obsolescence?

This refers to the degradation of a good where it loses its market value due to lack of use or proper maintenance.

With this in mind, we can see that functional obsolescence has to do with the market response to a given good which leads to the loss of value rather than the deterioration of the good.

Read more about functional obsolescence here:

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