Larry Is a Corn Farmer

question 30

Multiple Choice

Larry is a corn farmer. To attempt to maximise the value of his crop, Larry is most likely to benefit from

• A) buying a futures contract on corn for delivery at harvest time.
• B) selling his crop at the market price when it is harvested.
• C) buying a futures contract on corn and selling a futures contract on wheat.
• D) selling a futures contract on corn for delivery at harvest time.

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Definitions:

Price Lining

is a pricing strategy where products are sold at a limited number of price points, each representing a distinct level of quality or features.

Odd-even Pricing

A pricing strategy involving setting prices so they end in an odd or even number to influence perception of value.

Price Lining

A pricing strategy where products or services are grouped into different price ranges based on features or quality levels.

Odd-even Pricing

A pricing strategy that involves setting prices that end in odd or even numbers, believed to impact consumer perception and behavior.