Assume There Are Two Managers That Have Very Different Ideas

Assume there are two managers that have very different ideas about how to deal with recessions. Mr. Nice Guy believes in keeping workers during an economic downturn and does so by getting all of his workers to agree to a wage cut. Mr. Tough Guy believes that the best policy is to lay off workers and keep the wages of the remaining workers unchanged. Compare and contrast these two methods of dealing with an economic downturn. Which is likely to be more profitable for the firm and why