Use a Graph to Demonstrate the Circumstances That Would Prevail

question 35

Essay

Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits. Can this scenario be maintained in the long run? Explain your answer.

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Definitions:

Selling Car

The process or act of transferring ownership of a vehicle from one person to another in exchange for money or other compensation.

Consumer Leasing Act

is a federal law in the United States that regulates personal property leases that exceed four months and are used primarily for personal, family, or household purposes, to ensure consumers are informed about the terms and costs.

Balloon Payment

A large final payment on a mortgage that has relatively low fixed payments during the life of the mortgage.

Lease Automobile

A contractual agreement where one party (lessee) pays to use a vehicle owned by another party (lessor) for a predetermined time period.