Market stakeholders include nongovernmental organizations and business support groups.

How would you respond in Problem 2 if the marginal cost of production were increasing? Why?

What will be an ideal response?

A farmer sells 4 million bushels of corn at a spot price of $2.10 per bushel. The total cost of production was $9.2 million. The farmer has an effective tax rate of 25%

If the farmer entered into a futures contract at a price of $2.40 per bushel on 4 million bushels, what is the farmer's net loss or gain? A) $100,000 loss B) $800,000 loss C) $300,000 gain D) $400,000 gain