« previous next »

Author Question: Why is a futures contract considered valuable by both producers and ... (Read 23 times)

student77

  • Hero Member
  • *****
  • Posts: 567
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

  • Sr. Member
  • ****
  • Posts: 329
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

The Border Collie is considered to be one of the most intelligent breeds. The Border Collie is considered to be one of the most intelligent breeds.
This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev
Immanuel Kant (1724–1804). German philosopher considered by many to be the greatest thinker of the ... Immanuel Kant (1724–1804). German philosopher considered by many to be the greatest thinker of the ...
Many seniors pursue new careers, education, and hobbies well beyond what used to be considered ... Many seniors pursue new careers, education, and hobbies well beyond what used to be considered ...
Canada's Major Fertilizer Producers and their Products Canada's Major Fertilizer Producers and their Products
The Food Label Provides Valuable Consumer Information Manufacturers must adhere to strict labeling The Food Label Provides Valuable Consumer Information Manufacturers must adhere to strict labeling
Video: Krebs cycle : Formation of acetyl coenzyme A and Electron transport chain

For a complete list of videos, visit our video library