Which of the Following Supports the Notion That Most New

question 48

Multiple Choice

Which of the following supports the notion that most new ventures in China are financed by friends and family? 

• A) Informal investments are outlawed in China. 
• B) China lacks formal market-supporting institutions. 
• C) Credit reporting agencies are abundant in China. 
• D) Venture capitalists are the biggest investors for entrepreneurship in China.

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Definitions:

Marginal Product

The additional output that is gained by employing one more unit of a factor of production.

Average-Variable-Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output is altered.

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total quantity of produced output.

Average Total Cost

The aggregate expense of manufacturing (comprising both fixed and variable expenditures) divided by the overall amount produced.