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Question: If workers contribute to their group's investments and decide on these investments, workers at different stages of their careers may want different types of capital, for example a durable building versus a temporary one.

a. How might the age distribution of the workers make the building they choose to build too temporary or too durable? How can a building be too durable?

b. There are also young and old shareholders. Why isn't the choice of the building's durability also a problem if they or an elected management makes the decision on it?

Microeconomics, Economics

  • Category:- Microeconomics
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