Why might two Fortune 500 companies borrow the same amount of money for the same term at the same time yet both pay a very different interest rate even when the same banks makes both loans?
What will be an ideal response?
The reasons that interest rates are different have to do with many other factors than the ones mentioned. Most notably the credit-worthiness of the firm will play a role and the expected ability of the firm to be able to satisfactorily pay back the loan.
Economics
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When there is a positive externality in a free market, too much of the good is produced and consumed
Indicate whether the statement is true or false
Economics
Economists believe that entrepreneurs, whether they can articulate their behavior or not, always think about ________, which explains their MC = MR profit-maximizing activity
a. minimizing ATC b. maximizing revenue c. the consequences of producing the next unit d. maximizing output e. doing better than breaking even
Economics