In competitive markets the rate of return on capital equals its marginal product minus depreciation

the verdict

COMMON KNOWLEDGE

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Is it true that in competitive markets the rate of return on capital equals its marginal product minus depreciation?

This statement expresses a foundational microeconomic definition of competitive capital returns from neoclassical production theory, which does not require empirical citation.

Verdict: COMMON KNOWLEDGE · 0 sources for, 0 against · Last checked 4 Aug 2026

The analysis

The claim states the standard marginal productivity condition for capital rental rates under competitive market equilibrium in neoclassical economics. This is a definitional and theoretical identity taught in standard economic theory rather than an empirical hypothesis needing specific citation, making it common knowledge within the field.

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Receipt History

first checked04 Aug 2026

judged → COMMON KNOWLEDGE · 9504 Aug 2026

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