<em>Answer: In economics, the law of increasing costs is a principle that states that to produce an increasing amount of a good a supplier must give up greater and greater amounts of another good. ... If the economy is at the maximum for all inputs, then the cost of each unit will be more expensive.</em>
Answer:
The study of Economics can help you know this right away. Economics is very vital for the businessman or businesswoman in the sense that a thorough understanding in Economics can help him or her to minimize the cost of production and make more profit at the end of the day. Economics is very important for the consumer.
Hedging is the process in which derivatives are used to reduce risk exposure.
<h3>What is hedging?</h3>
Hedging is a strategy that is used to limit risks attached to financial assets.
It is management strategy requires buying or selling an investment to potentially reduce the risk of adverse changes in price.
Therefore, the process in which derivatives are used to reduce risk exposure is hedging.
For more information on hedging kindly check brainly.com/question/22282124
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