Author Question: A futures contract hedges against the risks associated with the volatility of spot price. Indicate ... (Read 92 times)

swpotter12 · **on:** Jun 30, 2018

A futures contract hedges against the risks associated with the volatility of spot price.
Indicate whether the statement is true or false

Question 2

A firm enjoys a positive economic profit when:
a. the demand curve touches the average cost curve at the profit-maximizing level of output.
b. the marginal revenue curve has a negative intercept on the ordinate axis.
c. the average revenue curve lies below the average cost curve at the profit-maximizing level of output.
d. the marginal cost is declining at the profit-maximizing level of output.
e. the average revenue curve lies above the average cost curve at the profit-maximizing level of output.