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

question 113

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 won't hire as many cooks.

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current value of a sum of money or cash flows expected in the future, discounted at a given return rate.

Initial Cost

The upfront expenditure associated with the acquisition of an asset or the launch of a project.

Net Present Value

A valuation method used to estimate the attractiveness of an investment, by calculating the present value of expected future cash flows minus the initial investment cost.