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Author Question: Why is a futures contract considered valuable by both producers and ... (Read 30 times)

student77

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on: Jun 30, 2018
Why is a futures contract considered valuable by both producers and consumers?

Question 2

In monopolistic competition, there are no brands, all the producers produce only identical, generic products.
 a. True
  b. False
  Indicate whether the statement is true or false


cam1229

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The futures contract is valuable to both producers and large consumers because it acts as a hedge which lessens the risk associated with the volatile spot prices.

Answer to Question 2

False


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