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.
Question 2
The problem of the commons arises because ________ exceeds ________ when the resource is used.
A) marginal social cost; marginal private cost
B) marginal private benefit; marginal social benefit
C) marginal private benefit; marginal private cost
D) marginal private cost; marginal social cost
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