This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A farmer who sells September corn futures at the time he plants his corn in May is A) competing ... (Read 183 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
on: Jun 29, 2018
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.

Question 2

Is it true that in the long run it is impossible for firms functioning in a perfectly competitive market to earn positive economic profits? Explain your answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dudman123

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

No, even in a perfectly competitive market, firms may earn positive economic profits in the long run. This happens when firms do not have identical cost structures. For example, whenever there is an increase in demand for a good in the market, the price of the good goes u


james9437

  • Member
  • Posts: 568
Reply 2 on: Jun 29, 2018
Gracias!

fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Plants Plants
Plants Plants
Plants Plants
Maximal Heart Rate Over Time Maximal Heart Rate Over Time
Aggregates are people who happen to be in the same place at the same time. Aggregates are people who happen to be in the same place at the same time.
Environmental Systems in Space and Time Environmental Systems in Space and Time
Video: Double Stranded DNA Molecule Animation

For a complete list of videos, visit our video library