Answer :
To prevent the asset base from shrinking, the minimum requirement is to invest an amount equal to the annual total of depreciation.
While this may not be an issue for a little while, a net speculation that is negative for a drawn out time frame period at last will deliver the undertaking uncompetitive.
What factors determine worker capital?
The economy saves capital, but when capital physically depreciates or when the number of workers rises, the amount of capital per worker decreases. The level of technology and the rate of savings increase output per worker, while population growth and physical depreciation decrease it.
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