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Firms Usually Face Asymmetric Variable Adjustment Costs Because

Question 29

Multiple Choice

Firms usually face asymmetric variable adjustment costs because


A) hiring costs are typically higher than firing costs.
B) firing workers is relatively easy compared to hiring workers.
C) firing workers can be difficult and costly for legal reasons compared to hiring workers.
D) workers are reluctant to change jobs during a recession but not during an expansion.
E) firms vary in size.

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