SBA 7(a)loans Are Made Usually for 1 to 3 Years

question 65

True/False

SBA 7(a)loans are made usually for 1 to 3 years in amounts up to $10,000,000, require collateral, and can be used for most business purposes.

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Definitions:

X-inefficiency

X-inefficiency occurs when a firm produces outputs at higher costs than is theoretically necessary, often due to a lack of competitive pressure.

Monopoly Firms

Companies that are the sole provider of a product or service in a market, having exclusive control over supply and market competition.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit, considering its cost structure and the market demand.

Purely Competitive

A market structure characterized by a large number of small firms, identical products, easy entry and exit, and perfect information, leading to price taking behavior.