A favorable corporate culture leads to returns that exceed the cost of capital

All of the following take place in the direct finance market except

A) ownership in corporations is sold in the form of common stock. B) ownership in corporations is sold in the form of preferred stock. C) corporate bonds are sold to savers. D) deposits from savers are accumulated and loans made to borrowers.

Brady Industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. The firm's total fixed costs equal

a. $2. b. $4. c. $1,000. d. $2,000.