Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A)A 'futures contract' is an agreement to trade an asset on some future date, at a price that is locked in today.
• B)Long-term supply contracts are unilateral contracts offered by a seller.
• C)Long-term supply contracts cannot be entered into anonymously; the buyer and seller know each other's identity. This lack of anonymity may have strategic disadvantages.
• D)An alternative to vertical integration or storage is a long-term supply contract.

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Definitions:

Marginal Costs

The rise in the overall expense incurred from the production of an extra unit of a good or service.

Potential Customers

Individuals or organizations that could become purchasers of a product or service, but have not yet done so.

Expected Profit

The forecasted amount of profit based on potential outcomes and their probabilities.

Price

The financial sum anticipated, needed, or handed over as payment for an item.