« previous next »

Author Question: Why is a futures contract considered valuable by both producers and ... (Read 50 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?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Antoine-Laurent de Lavoisier is considered the "Father of Modern Chemistry". Antoine-Laurent de Lavoisier is considered the "Father of Modern Chemistry".
Geoffroy's tamarin has been considered a subspecies of the similar cottontop tamarin, shown abo Geoffroy's tamarin has been considered a subspecies of the similar cottontop tamarin, shown abo
The conduction system of the heart; traces the path of the electrical impulse that stimulates the he The conduction system of the heart; traces the path of the electrical impulse that stimulates the he
An electrocardiogram (EKG) wave, a record of the electrical signal as it moves through the conductio An electrocardiogram (EKG) wave, a record of the electrical signal as it moves through the conductio
Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa
5. Social contract theorists believe that the social contract is/was a historical fact. ... 5. Social contract theorists believe that the social contract is/was a historical fact. ...
Video: Helper T cell receptors, activation, proliferation, differentiation & action

For a complete list of videos, visit our video library