A farmer who sells September corn futures at the time he plants his corn in May is
A) competing against speculators, who profit from price fluctuations.
B) increasing his risk from price fluctuations.
C) reducing his risk from price fluctuations.
D) reducing or increasing his risk from price fluctuations, depending on what subsequently happens to the price of corn.
C
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All of the following describe the conflict between divisions EXCEPT
a. Divisional managers are rewarded for the efficiency of their divisions b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
There will be a surplus of a product when:
A. price is below the equilibrium level. B. the supply curve is downward sloping and the demand curve is upward sloping. C. the demand and supply curves fail to intersect. D. consumers want to buy less than producers offer for sale.