If firms face a weak demand they are more likely to
A)buy more raw materials and semi-finished goods.
B)increase output.
C)reduce their workforce.
D)invest in new equipment.

Question

Quizplus · Accepted Answer

When firms face weak demand, they will have to reduce their production levels to avoid piling up of inventories. As a result, they may need to lay off some workers to reduce their costs.

If Firms Face a Weak Demand They Are More Likely