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Investment decisions than central planners

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Reference no: EM131040101

Private entrepreneurs are likely to make better investment decisions than central planners because

a. the failure of a government project reduces the personal wealth of the planners involved in the decision.

b. entrepreneurs can often turn a project's failure into a request for additional funding to rectify the "problem".

c. entrepreneurs seek ever larger budgets, while planners are more focused on cost reductions and efficiency.

d. investors who make mistakes must bear the costs of these mistakes personally

Reference no: EM131040101

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