Which of the Following Is a Method Firms Can Use

question 26

Multiple Choice

Which of the following is a method firms can use to counteract price fluctuations and eliminate income risk?

• A)Manufacture all needed inputs internally
• B)Acquire upstream firms in the vertical chain
• C)Enter into futures contracts to hedge the price of raw materials
• D)Eliminate competitors by under-cutting their price
• E)None of the above

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Definitions:

Prejudice

A preconceived opinion that is not based on reason or actual experience, often directed against people of a different race, religion, or sexual orientation.

Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or gender.

Homosexuality

The romantic or sexual attraction or behavior between members of the same sex or gender.

Ingroup Favoritism

Preferential treatment of, or more favorable attitudes toward, people in one’s own group.