« previous next »

Author Question: Why is a futures contract considered valuable by both producers and ... (Read 52 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?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

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
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
René Descartes (1596–1650). French philosopher considered the founder of modern philosophy. A ... René Descartes (1596–1650). French philosopher considered the founder of modern philosophy. A ...
Every society has boundaries that divide what is considered socially acceptable from what is not ... Every society has boundaries that divide what is considered socially acceptable from what is not ...
Aging is more than biology. In some cultures, Jennifer Lopez, 43, would be considered elderly. Lopez ... Aging is more than biology. In some cultures, Jennifer Lopez, 43, would be considered elderly. Lopez ...
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: Introduction to Heart Attacks

For a complete list of videos, visit our video library