Assume a firm finds that its adjustment costs are large enough tht it decides not to decrease its workforce and capital stock when production falls. What is the consequence of this action to the firm?

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The Answer of Assume a firm finds that its adjustment costs are large enough tht it decides not to decrease its workforce and capital stock when production falls. What is the consequence of this action to the firm?

Assume a Firm Finds That Its Adjustment Costs Are Large