Explain How Use of a Credit Card Can Affect the Successful

question 50

Essay

Explain how use of a credit card can affect the successful implementation of a financial plan.Itemize at least ten benefits and disadvantages of using credit cards in the financial planning process.

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Definitions:

Monopoly Price

The price set by a monopolist, which is typically higher than in competitive markets because the monopolist maximizes profit by producing where marginal revenue equals marginal cost.

Free

Without cost or payment, often referring to goods, services, or activities that can be enjoyed without financial compensation.

Subscribers

Individuals or entities that pay a subscription fee to receive or access a product or service.

Rent-seeking Behavior

Rent-seeking Behavior involves seeking to increase one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.