Which of the Following Is Probably Not a Good Reason

question 37

Multiple Choice

Which of the following is probably not a good reason for leasing instead of buying?

• A) Taxes may be reduced by leasing.
• B) Leasing may reduce transactions costs.
• C) Leasing may provide a beneficial reduction of uncertainty.
• D) All of these are good reasons.
• E) All of these are not good reasons.

---

Definitions:

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, the products are homogenous, and there is free entry and exit in the market.

Average Revenue

The revenue per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that is gained from selling one more unit of a good or service.

Purely Competitive Firm

An enterprise that operates in a perfectly competitive market, where it is a price taker due to the homogeneity of products and the presence of many buyers and sellers.