1 answer

What are the three options farmers (as price takers) have to manage price risk? Contracts, Negotiation,...

Question:

What are the three options farmers (as price takers) have to manage price risk? Contracts, Negotiation, Hedging Contracts, HeLook at the graph below. Which of these farmers is the most risk averse? Option 3 Expected return Farmer A Option 2 Option 1Look at the graph below. What is the decision of Farmer A regarding the option 2? Option 3 Farmer A Expected return . OptionLook at the graph below. What do you think about the option 3? Option 3 Expected return Farmer A Option 2 Option 1 Farmer B R

What are the three options farmers (as price takers) have to manage price risk? Contracts, Negotiation, Hedging Contracts, Hedging, Insurance Contracts, Branding, Bargaining
Look at the graph below. Which of these farmers is the most risk averse? Option 3 Expected return Farmer A Option 2 Option 1 Farmer B Risk Farmer A as, for the same risk, he needs a higher expected return than Farmer B Farmer B as, for the same risk, he needs a higher expected return than Farmer A
Look at the graph below. What is the decision of Farmer A regarding the option 2? Option 3 Farmer A Expected return . Option 2 Option 1 Farmer B Risk He does not take it as the expected return is lower than its own minimum return for the risk He takes it as its expected return is higher than the option 1
Look at the graph below. What do you think about the option 3? Option 3 Expected return Farmer A Option 2 Option 1 Farmer B Risk All farmers will take the option 3 Only Farmer A will take the option 3 Only Farmer B will take the option 3

Answers

The three options farmers usually have to manage risk is is contracts, hedging and insurance where insurance protects them from any mishap while hedging allows them to reduce the disk by counting the investments with others and contracts can help to reduce the risk as well and that is the reason why

(B) is the answer to this question

Because risk can't be offset by negotiation or branding

(A,C) are wrong

According to Chegg policy, only 1st Question should be answered. Thanks and Please Upvote

.

Similar Solved Questions

1 answer
What problems arise in an acute care facility in distinguishing between an outpatient and an inpatient?
what problems arise in an acute care facility in distinguishing between an outpatient and an inpatient?...
1 answer
Saved Help Required information Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3 The...
Saved Help Required information Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3 The following information applies to the questions displayed below The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash b...
1 answer
There are only 2 shoe stores in a small town, and they each can supply a...
There are only 2 shoe stores in a small town, and they each can supply a pair of shoes at a constant marginal cost of MC = $18. Total market demand for shoes in this town is given by P = 150 – Q. If the 2 firms compete against each other in a Cournot duopoly, how many pairs of shoes will each ...
1 answer
Answer the question thats attached. Choice answers are provided below The operations manager for a well-drilling...
Answer the question thats attached. Choice answers are provided below The operations manager for a well-drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long-run profits (in $000) will vary with the amount of precipitation (r...
1 answer
Can someone help with this answer and explain? X 3.4.25 Assigned Media E Question Help Below...
can someone help with this answer and explain? X 3.4.25 Assigned Media E Question Help Below are 36 sorted ages of an acting award winner. Find using the method presented in the textbook. 52 71 Pse- (Type an integer or a decimal)...
1 answer
After the sale of the stock on December 2nd, 2018, your cost basis per share is...
After the sale of the stock on December 2nd, 2018, your cost basis per share is closest to: a. $27.50 b. $28.16 c. $29.29 d. $50.83 e. $52.50 Use the following information from questions 6-12. In both 2018 and 2019 you expect to receive a W2 for $200,000; $65,000 will be already withheld on your W2 ...
1 answer
9 Space? vetween the **9. Steel rails 20 m lo between the rails to allow laid...
9 Space? vetween the **9. Steel rails 20 m lo between the rails to allow laid on a cold winter day at -10° C. How much space must be left to allow for expansion at a summer temperature of 40°C the aluminum cap is too hard to unscrew on a new illeri *+10. If the aluminum a...
1 answer
How do you find the non differentiable points for a function?
How do you find the non differentiable points for a function?...
1 answer
Loci close to the centromere have: a. No recombination between them b. Lots of recombination between...
Loci close to the centromere have: a. No recombination between them b. Lots of recombination between them c. Some degree of recombination between them d. Independent assortment e. Independent segregation...
1 answer
Should the respirator sustaining Mr. Lee’s life be removed, understanding the reason that Mr. Lee wants...
Should the respirator sustaining Mr. Lee’s life be removed, understanding the reason that Mr. Lee wants to remain on life support?...
1 answer
One objective of financial accounting is providing relevant information about the operating success or failure of...
One objective of financial accounting is providing relevant information about the operating success or failure of companies. In this case, the measurement of LinkedIn’s expenses was very different before and after it was acquired by Microsoft, due principally to differences in the amount of am...
1 answer
You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine...
You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $2.4 million in anticipation of using it as a toxic waste dump site but has recently hired anoth...
1 answer
Describe the appropriate choice for recording and reporting an investment in equity securities of a business....
Describe the appropriate choice for recording and reporting an investment in equity securities of a business. How is the level of influence the investor has over the investee's operational and financial decisions will affect the choices of accounting....
1 answer
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to ...
3 answers
In unit-vector notation, what is the torque about the origin on a jar of jalapeno peppers...
In unit-vector notation, what is the torque about the origin on a jar of jalapeno peppers located at coordinates (3.0 m, -2.0 m, 4.0 m) due to force F1= (7.7 N) i- (2.2 N) j + (3.0 N) k ((a), (b) and (c) for i , j and k components respectively), force F2= (-7.7 N) i - (2.2 N) j - (3.0 N) k ((d), (e)...