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5. If the producer of a product has entered into a fixed price sale agreement for that output, the producer faces: A. a nice steady

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5. If the producer of a product has entered into a fixed price sale agreement for that output, the producer faces: A. a nice steady profit because the output price is fixed. B. an uncertain profit if the input prices are volatile. This risk can be reduced by a short hedge. C. an uncertain profit if the input prices are volatile. This risk can be reduced by a long hedge. D. a modest profit if the input prices are stable. This risk can be reduced by a long hedge. E. a modest profit if the input prices are stable. This risk can be reduced by a short hedge

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