You’re suggesting that the costs instead come from lenders?
But then production will be limited by the point where the marginal cost of a unit exceeds the price before the emergency (assuming financing is free), instead of the point where the marginal cost exceeds the value during the emergency. That is, you’ve unnecessarily limited production.
You’re suggesting that the costs instead come from lenders?
But then production will be limited by the point where the marginal cost of a unit exceeds the price before the emergency (assuming financing is free), instead of the point where the marginal cost exceeds the value during the emergency. That is, you’ve unnecessarily limited production.