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The main disadvantage of futures contracts as compared to options on futures contracts is that futures
Allocative Efficiency
A state of the economy in which the distribution of resources among different uses is optimal, reflecting consumer preferences and maximizing total societal welfare.
Productive Efficiency
A situation in which a goods or services are produced at the lowest possible cost, utilizing all available resources efficiently.
Monopoly Power
The ability of a single supplier to control the market price and supply of a product or service.
Brand Loyalty
A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.
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