Financial economies, Microeconomics

Assignment Help:

Financial Economies:

These are benefits obtained by large firms as a result of contracting credit from financial institutions at lower interest rates than smaller firms. The fact is that the large firms can provide collateral securities for such loans and their mere sizes alone make them credit-worthy as compared to smaller firms. In addition to borrowing from financial institutions, large firms can easily float shares in the stock market. At times suppliers of materials to large firms may give them out on credit. This is a sort of pre-financing of the firm’s activity. All these advantages lead to the lower per unit cost of output produced.


Related Discussions:- Financial economies

National budget, National Budget: A National Budget is a document show...

National Budget: A National Budget is a document showing estimates of expected government revenue and intended expenditure for the coming financial year. It usually consist of

Summary of education and economic development, Normal 0 false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Level of aggregate demand in economy, Q. Level of aggregate demand in econo...

Q. Level of aggregate demand in economy? Demand-pull inflation takes place when there is an increase in level of aggregate demand in economy. Aggregate demand comprises five co

Rational expectations and economic theory, RATIONAL EXPECTATIONS AND ECONOM...

RATIONAL EXPECTATIONS AND ECONOMIC THEORY  : Much of undergraduate macroeconomic theory is discussed on the assumption that, in the short run, the expectations of economic age

Advantages and disadvantages of a monopoly market, Problem 1: i) ‘There...

Problem 1: i) ‘There is a trade-off between inflation and unemployment.' Do you agree with this statement? Justify your example using appropriate diagrams. ii) Mauritius is

Production theory, why constant return to scale is important

why constant return to scale is important

Elasticity, what are the uses of elasticity to the private sector

what are the uses of elasticity to the private sector

Labor Economics, What is Nancy’s lifetime income as a function of her level...

What is Nancy’s lifetime income as a function of her level of schooling, S? 2. What is Nancy’s lifetime income if she gets no schooling? What is it if she goes to school for all 60

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd