Why are car loans always secured with collateral? a. drivers are required to carry collision insurance on leased cars. b. banks are unwilling to give out car loans unless the buyer has a big savings account. c. the car can always be repossessed if the owner stops paying off the loan. d. car loans build the depreciation of the car's value into the total cost of the loan.
2b2t

In the short-run, marginal costs are equal to the change in variable costs as output changes. ( mc = change in variable cost / change in quantity) assume that capital is fixed in the short-run. (a) start with the equation for marginal cost and derive an equation that relates marginal cost of production to the cost and productivity of labor. (b) draw a standard looking short-run marginal cost curve and use the equation you derived to explain its shape.