Suppose That Because of the Popularity of the Low-Carb Diet,bakeries

question 36

Multiple Choice

Suppose that because of the popularity of the low-carb diet,bakeries need fewer workers and steak houses need more workers.The unemployment created by this change is

• A)frictional unemployment created by efficiency wages.
• B)frictional unemployment created by sectoral shifts.
• C)structural unemployment created by efficiency wages.
• D)structural unemployment created by sectoral shifts.

---

Definitions:

Marginal Cost

The financial requirement for producing a supplementary unit of a product.

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.

Long-Run Cost Diagram

A graphical representation depicting the relationship between output and the long-term costs of production when all inputs can be varied.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.