(Consider This) Which of the Following Methods Is Commonly Used

question 83

Multiple Choice

(Consider This) Which of the following methods is commonly used by farmers to "smooth" income over time?

• A) producing only one crop to benefit from specialization
• B) renting land from other farmers to increase production
• C) entering contracts with buyers of their farm output to assure themselves of a fixed price
• D) All of these risk-management techniques are used to hedge against short-run price and output fluctuations.