Explain why the presence of significant adjustment costs might induce a firm to hold excess labor. Would you expect adjustments costs to be high or low in a firm whose workers' skills are very specific to the firm? Explain.

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The Answer of Explain why the presence of significant adjustment costs might induce a firm to hold excess labor. Would you expect adjustments costs to be high or low in a firm whose workers' skills are very specific to the firm? Explain.

Explain Why the Presence of Significant Adjustment Costs Might Induce