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BUSI 620 DISCUSSION BOARD 4

BUSI 620 DISCUSSION BOARD 4

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Under what condition should a firm continue to produce in the short-run if it incurs losses at the best level of output?
As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all.  Which method would you choose?  Why?


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