Foreign exchange contracts, such as futures, swaps, and options, are collectively known as:

Explain why a firm may hire managers to operate outlets near the firm's headquarters, but may sell franchise rights for the outlets located greater distances from the headquarters

(With a franchise, the firm sells a brand name and a method of doing business to someone who then owns and operates the outlet.)

A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?

a. The firm is operating at a scale where the average total cost of production is falling as output expands. b. The firm is operating at a scale where total fixed costs are not minimized c. The firm is operating at a scale where average total cost is constant as output expands. d. The firm has grown so large that average total cost increases as output expands.