A corn-chip maker who buys September corn futures in May at the time she signs a contract with Safeway to deliver 1000 cases of corn chips each month for the next year is
A) competing against speculators, who profit from price fluctuations.
B) increasing her risk from price fluctuations.
C) reducing her risk from price fluctuations.
D) reducing or increasing her risk from price fluctuations, depending on what subsequently happens to the price of corn.
C
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Which of the following statements is true?
A) Arithmetic or geometric growth rates gives similar answers for long periods. B) Using either arithmetic or geometric average to compute average growth rates gives similar answers for short periods. C) Geometric average of growth rate ignores the exponential nature of growth. D) Arithmetic calculation of growth rate considers the exponential nature of growth.
The social cost of a monopoly is equal to its
a. economic profit. b. fixed cost. c. deadweight loss. d. variable cost.