If August futures for a commodity are currently trading at $9.30/bushel, and you expect the basis in July to be $0.30/bushel over the August futures, then you expect the July cash price to be:

For most practical matters, economists assume that

A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.

Refer to Scenario 10.2. How much profit does the monopolist earn?

A) $4512.50 B) $4987.50 C) $475.00 D) $5.00