What Is Meant by the Term Dynamic Incentives in the Context

question 21

Short Answer

What is meant by the term dynamic incentives in the context of making loans to micro borrowers.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating an inverse relationship.

Marginal Cost

The cost of producing one more unit of a good or service, considering variable costs but not fixed costs.

Block Pricing

Practice of charging different prices for different quantities or “blocks” of a good.

Price Discrimination

Practice of charging different prices to different consumers for similar goods.