Eric Decides to Open a Small Catering Business to Serve

question 26

Multiple Choice

Eric decides to open a small catering business to serve local businesses. Based on this information, what is his most likely source of funding?

• A) personal funds, family, and friends
• B) bank lending
• C) angel investor
• D) venture capital

---

Definitions:

MC

Short for Marginal Cost, it refers to the increase in total cost that arises from producing one additional unit of a good or service.

Minimum ATC

The point at which the average total cost of production is at its lowest, indicating the most efficient scale of production.

Demand Schedule

A table of numbers showing the amounts of a good or service buyers are willing and able to purchase at various prices over a specified period of time.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs.