Why may some investors prefer forward contracts to futures?
What will be an ideal response?
Forward contracts are more flexible than futures contracts.
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Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs. B) a small number of large firms to minimize production costs C) a large number of large firms to minimize production costs. D) an indeterminate number of firms of indeterminate size to minimize production costs.
Individuals become dependent on welfare payments because the benefits that have to be given up in order to become employed are higher than the benefits from working
a. True b. False