A Borrower Defaults on a Loan When He Stops Making

question 87

True/False

A borrower defaults on a loan when he stops making payments on the loan.

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Definitions:

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.

Market Price

The current value at which an asset or service can be bought or sold in an open market.

Economies of Scale

The economic benefits that businesses gain from their size of operations, where the expense per unit of production typically lowers as the scale increases.

Increasing Returns

A situation in which an increase in the scale of production results in a disproportionate increase in output, usually leading to lower average costs.