Many States Impose No Limit on the Rate of Interest

question 10

Multiple Choice

Many states impose no limit on the rate of interest that may be charged:

• A) on loans to corporations.
• B) on consumer credit card transactions.
• C) on any consumer loan.
• D) All of the above.
• E) Two of the aboe.

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Definitions:

Marginal Cost

The monetary outlay for producing an additional unit of a good or service.

Fixed Costs

Expenses that do not change in the short term regardless of the level of production or sales, such as rent and salaries.

Average Total Cost Curve

A graph that shows the per unit cost of production at various levels of output.

Short-Run

A time period in which at least one factor of production is fixed, limiting the ability of firms to adjust to changes in market conditions fully.