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One Disadvantage of Leasing Is That in Many Cases, the Return

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One disadvantage of leasing is that in many cases, the return to the lessor is quite high so the firm in need of the asset might be better off borrowing to purchase it.


Definitions:

Clarke Tax

A taxation mechanism designed to make individuals reveal their true valuation for a public good.

Polluters

Entities that release pollutants into the natural environment, causing pollution and environmental harm.

Pareto Optimal

The allocation of resources in a manner that doesn't allow for the enhancement of one person's condition without the deterioration of another's.

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

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