When sales drop each season in the auto industry, General Motors temporarily has too many employees to produce the number of cars sold.In this situation, General Motors most likely would
A) hire more workers.
B) lay off workers.
C) fire as many workers as possible.
D) allow production workers to relax more on the production line.
E) force all of the extra workers to seek early retirement.

Question

Quizplus · Accepted Answer

When sales drop in the auto industry, GM will most likely have to lay off workers to match their production output to the demand for their cars. Hiring more workers or allowing production workers to relax more would only increase costs with no corresponding increase in sales, while firing as many workers as possible or forcing all of the extra workers to seek early retirement would be unnecessarily harsh and could hurt employee morale.

When Sales Drop Each Season in the Auto Industry, General