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A common feature of home construction constricts is that when it costs more to construct a building than was originally estimated. The constrictor must absorb the additional cost. Explain in no more than three sentence how this feature reduces the problem of moral hazard but also forces the constrictor to bear more than he would like.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91235409

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