Cola Manufacturers Such as Coke and Pepsi Are an Example

question 28

Multiple Choice

Cola manufacturers such as Coke and Pepsi are an example of this type of competition:

• A)pure competition
• B)monopolistic competition
• C)a monopoly
• D)an oligopoly

---

Definitions:

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.

Speculative Forward Contract

A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.

Fair Value Hedge

A risk management technique that uses financial instruments to mitigate the risk associated with changes in the fair value of an asset or liability.