Do I buy or do I lease?

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Transcript Do I buy or do I lease?

agenda
Anything New?
Buy or lease?
What’s going on with supermarkets?
Homework
– Chapter 8 (Including the Last Word)
– Questions 3 (skip d)
– Problems 2, 4 (don’t forget e and f on page 180)
Intro to Chapter 10 (yup, we skip Ch. 9)
Homework
Chapter 22
Questions 4, 5, 6, 7
Cycle 8, Day 3
Anything new?
La Salle Bonus
Car buying…Do I buy or do I lease?
You are considering buying a car. The
deal offers you a chance to lease the
car* rather than buy it.
What do you do?
* A lease is a fixed term contract (perhaps 36 months) to own
the car for that period of time. You pay the monthly lease
payments then return the car at the end of the term (36
months in this case).
La Salle Bonus
Car buying…Do I buy or do I
lease?
http://audipasadena.rusnakonline.com/in
dex.htm
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Car buying…Do I buy or do I lease?
Facts…
$399 per month for 36 months to lease the
car.
Spend $33,800 to buy the car.
You can borrow $25,000 at 6%*
Earn 8% on your investment
*http://www.bankrate.com/calculators/mortgages/loancalculator.aspx
La Salle Bonus
Car buying…Do I buy or do I lease?
What do you drive that 37th month?
La Salle Bonus
Car buying…Do I buy or do I lease?
More Information…
http://auto.howstuffworks.com/buying-selling/how-to-lease-a-car.htm
What’s going on with
supermarket industry?
http://online.wsj.com/article/SB100014
240527023043738045775229122448
66078.html
HOMEWORK
– Chapter 8 (Including the Last Word)
– Questions 3 (skip d)
– Problems 2, 4 (don’t forget e and f on
page 180)
three
minute
break
Intro to
Chapter 10
Pure
Competition
Monopolistic
Competition
Oligopoly
Monopo
Characteristics
Number of Sellers
Several
Few
One
None
(commodity)
Some
More
????
Barriers to
Entry / Exit
None
Some
More
Total
Control of Price
None
Some
Significant
Total
Product
Differentiation
TOOLS
Many
GOAL
Where do businesses want to be?
Intro to
Chapter 10
Characteristics of a Monopoly (page 195)
1.Single Seller / Producer
2.No Substitutes
3.Price Maker
4.Absolute Barriers to entry / exit
Intro to
Chapter 10
Understanding the graph on page 201
Remember…Quantity produced is
where MR = MC but price is
determined by the demand curve.
Homework
Chapter 10
Problems 1 & 2