A small bakery that makes 1000 muffins can make the order of 3000 to 4000 muffins after taking a loan from bank. Bank will lend money to the bakery at a particular interest rate. Bakery will accept the order if the revenue earned by them is more than the cost of taking a loan.

A company will take the loan if the interest rate is less than the price they get, because in that case firm will earn profits in the short run.

Second thing they will consider is that the price charged by the bakery should be constant for all 3000 to 4000 muffin, otherwise they will take marginal revenue into consideration.