If the Producer of a Product Has Entered into a Fixed

question 45

Multiple Choice

If the producer of a product has entered into a fixed price sale agreement for that output,the producer faces:

• A) a nice steady profit because the output price is fixed.
• B) an uncertain profit if the input prices are volatile. This risk can be reduced by a short hedge.
• C) an uncertain profit if the input prices are volatile. This risk can be reduced by a long hedge.
• D) a modest profit if the input prices are stable. This risk can be reduced by a long hedge.
• E) a modest profit if the input prices are stablE. This risk can be reduced by a short hedgE.

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Definitions:

Medical Alert Bracelet

A wearable identification tag that provides critical health information of the wearer to emergency responders.

Allergic Response

The body's immune system reaction to a perceived harmful substance, ranging from mild symptoms like a rash to more severe reactions such as anaphylaxis.

Suprainfection

An infection occurring after or on top of an earlier infection, especially when caused by microorganisms resistant to the treatment initially used.

Clostridium Difficile

A bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon, often after the use of antibiotics.