Sticky Cakes Is a Bakery

question 23

Multiple Choice

Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers

• A) does not shift its MC curve or its ATC curve.
• B) shifts its MC curve downward but not its ATC curve.
• C) shifts both its MC curve and its ATC curve downward.
• D) does not shift its MC curve but shifts its ATC curve downward.

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Definitions:

Work Benefit

Advantages or perks provided to employees in addition to their salary, such as health insurance, retirement plans, paid vacation, and professional development opportunities.

Joblessness

The state of being without a job, often referring to unemployment or the lack of available employment opportunities in an economy.

Inner-City

Typically refers to the central part of a city, which can be characterized by higher population density, older infrastructure, and often, but not always, lower socioeconomic status.

Racial Segregation

The enforced separation of different racial groups in daily life, whether by law or social practice.