A farmer who sells September corn futures at the time he plants his corn in May is
A) competing against speculators, who profit from price fluctuations.
B) increasing his risk from price fluctuations.
C) reducing his risk from price fluctuations.
D) reducing or increasing his risk from price fluctuations, depending on what subsequently happens to the price of corn.
C
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The formula for optimal employment of two resources, x and y, is
a. MPx - MPy b. MRPx = MRPy c. MPx ? Px = MPy ? Py d. MRCx = MRCy e. MRPx/MRCx = MRPy/MRCy = 1
As a knowledgeable investor in 2007, you should have realized that as interest rates fell, bond prices would
a. also fall. b. rise. c. become more volatile, like stock prices. d. fall but not by as much as stock prices.
What is the difference between the structural stagnation hypothesis and the secular stagnation theory?
A. Structural stagnation sees foreign countries moving down the value-added chain as the cause of a stagnation, while secular stagnation sees foreign countries moving up the value-added chain as the cause of a stagnation. B. Structural stagnation sees too little investment as the cause of a stagnation, while secular stagnation sees globalization as the cause. C. Structural stagnation sees globalization as the cause of a stagnation, while secular stagnation sees too little investment as the cause. D. There is no difference, they both attribute stagnation to too little investment.
The demand curve facing a monopolist will be more elastic
A) the greater is the number of substitute products. B) as the consumers' need for the good increases. C) the greater is the amount of fixed costs to cover. D) as the number of consumers increases.