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If You Agree to Allow the Lender to Take Your

question 63

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If you agree to allow the lender to take your computer in the event you fail to make payments, the loan is which of the following?


Definitions:

Natural Monopoly

A market condition where a single firm can provide goods or services to an entire market at a lower cost than two or more companies could, due to high fixed costs and significant economies of scale.

Economies of Scale

The financial benefits gained by businesses as a result of their operating size, where the cost for each unit produced decreases as the scale of operation grows.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specified period.

Marginal Cost

The amount spent on manufacturing one more unit of a product.

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