What is the point called when depreciation becomes total loss?
Food stuff is an obvious/clear example (banana needs to be sold, but if the asking price is too high and no one buys it eventually it rots on the shelf and becomes worthless). Some customers will buy bananas that aren't perfectly ripe (good for banana bread or banana pudding), but eventually it reaches a point where it is no longer good for that either.
I know grocery stores will throw away expired items, so I thought of other examples.
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Cars sitting on the lot 500+ days after rolling off the line. Newer models have been manufactured and are on the lot too. Only the dealerships won't budge on prices too low that the 500+ days inventory eventually sells. The dealerships are only allowed to write off so many vehicles and have already done that with those models. 500+ that car is turning into rust. There's got to be a point when the dealership knows no one will buy it under any circumstances.
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A house is priced too high and any reasonable buyer would see they're going to have to put in at least but probably more of the house's asking price to make it livable. Only the sellers don't budge on price, all the repairs needed don't get done, and then the house rots away (roof caves in, entire heating system doesn't work, foundation cracks form, and interior decays). Eventually the house will collapse.
For examples like these, is there a concept or phrase either at the micro or macro level where the shelf life goes on too long that the product depreciates into a total loss?
What is the point called when depreciation becomes total loss?
byu/SgtPepper_8324 inAskEconomics
Posted by SgtPepper_8324