Pawn Shops Give Small Short-Term Loans but Require in Return

question 15

Multiple Choice

Pawn shops give small short-term loans but require in return.

• A)very high collateral
• B)high interest rates
• C)a payment equal to twice the amount of the loan
• D)credit cards

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Definitions:

Selling Additional Units

Involves the process and strategies of increasing sales by offering more units of a product to the market.

Contestable Markets

Markets where the entry and exit of firms are so easy that the market always remains competitive, ensuring that prices remain close to marginal costs.

Barriers To Entry

obstacles that make it difficult for new competitors to enter a market, including high startup costs, access to technology, and stringent regulations.

Competitive

Characterizes a market scenario where multiple sellers strive to attract customers by offering better terms, prices, or products.