Which will be TRUE for a monopolistic competitor experiencing short-run losses?

An option buyer

A) has a greater insurance benefit than the purchaser of a futures contract. B) bears the risk of unfavorable price movements. C) is purchasing a naked option if he or she does not also own the underlying asset. D) generally will incur a lower cost than will the purchaser of a futures contract.

Which of the following pairs of characteristics would be consistent with imperfect competition?

a. Many buyers and sellers and no barriers to entry b. Many buyers and sellers and a homogenous product c. No barriers to entry and all buyers and sellers have perfect information d. Many buyers and sellers and some barriers to entry e. Many buyers and sellers and everyone has perfect information