Farmer Mac Raises Wheat

question 88

Short Answer

Farmer Mac raises wheat.He expects his yield this summer to be 320,000 bushels but he decides to sell futures contracts on only 230,000 bushels.What is his logic for selling futures and why didn't he sell futures on his entire crop?

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Definitions:

Number

A mathematical object used to count, measure, and label.

Units

Basic quantities or measurements in various fields like sciences, mathematics, and economics used to express the magnitude or quantity of something.

Price Rises

An increase in the cost of goods or services over a period, often caused by factors such as inflation, increased demand, or higher costs of production.

Marginal Utility

The extra pleasure or benefit one gains from the consumption of one more unit of a product or service.