In the Distant Future,companies Will Be Using Technology That Can

question 87

Multiple Choice

In the distant future,companies will be using technology that can replicate food.What will happen to the equilibrium wage and quantity of cooks?

• A) The wage will rise and the number of cooks employed will rise.
• B) Both will remain unchanged.
• C) The wage will stay the same, but many cooks will leave the market.
• D) The wage will rise, and the number of cooks employed will fall.
• E) The wage and quantity demand will both decrease because firms will not hire as many cooks.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, providing stability in a budget.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.