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 264 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
Thanks for the timely response, appreciate it

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Ears and grains of modern corn and its ancestor, teosinte Ears and grains of modern corn and its ancestor, teosinte
Richmond, Virginia, lies in ruins in April 1865 at the time of Lincoln’s visit—and a few days before Richmond, Virginia, lies in ruins in April 1865 at the time of Lincoln’s visit—and a few days before
Time Time
When young infants hold objects for a long period of time they eventually become habituated to them. When young infants hold objects for a long period of time they eventually become habituated to them.
Under what conditions can part-time employment in high school be a negative influence on school ... Under what conditions can part-time employment in high school be a negative influence on school ...
The Hfr chromosome time-of-entry map is assembled from the recombinant data The Hfr chromosome time-of-entry map is assembled from the recombinant data
Video: Wound Cultures

For a complete list of videos, visit our video library