Mary has invented a new mousetrap that she believes will be better than any other. To raise money for production, she talks with a ________________, which offers to provide her with enough money as well as advice and connections in exchange for a substantial percentage of her profits.
a. local bank
b. stockbroker
c. venture capital firm
d. bond trading company
c. venture capital firm
Venture capital firms make financial investments in new companies that are still relatively small, but that have potential to grow substantially. Early-stage investors are willing to take large risks to be in a position to gain substantial returns on their investment.
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When Johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. This indicates that
a. demand was elastic. b. demand was inelastic. c. demand was unit elastic. d. the demand curve was vertical.
Farmer Brown sells her wheat in a perfectly competitive market. Suppose the current market price of wheat is $2.50 per bushel.
A. Farmer Brown can sell as much wheat as she likes at $2.50 per bushel. B. Farmer Brown can charge any price for her wheat, but will maximize profit if she sells for less than $2.50. C. Farmer Brown should charge more than $2.50. D. Farmer Brown can charge more than $2.50 and still sell some wheat.
Refer to the figure below. If the price rises from $10 to $14, what will happen to the price elasticity of supply? 
A. It stays the same. B. It decreases. C. It increases. D. This cannot be determined from the information provided.
In the above table, the total variable cost of producing 16 units of output is
A) $20. B) $60. C) $100. D) $120.