Input price risk and output price risk are both a form of commodity price risk.

Question

Quizplus · Accepted Answer

Both input price risk and output price risk are a type of commodity price risk. Input price risk refers to the uncertainty of the cost of inputs, such as raw materials or energy, that go into producing a commodity. Output price risk refers to the uncertainty of the price at which the commodity will sell. Both types of risk can have significant impacts on the profitability of producers and consumers of commodities.

Input Price Risk and Output Price Risk Are Both a Form