Southern Fuel has an inventory of 756,000 gallons of heating oil that it expects to maintain over the next 60 days. The futures contracts on heating oil are based on 42,000 gallons. If the firm wishes to fully hedge its inventory, what position should the firm take in heating oil futures contracts? Given the exact same circumstances and information, how could Southern Fuel "speculate" with its business inventory?

Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. which of the following policy options might most effectively enable the government to achieve its objectives in this situation? do nothing to all. turn the company into a public enterprise. use antitrust laws to increase competition. regulate the firm's pricing behavior.