As fiRms Face Reduced Demand for Their Goods and Services

As firms face reduced demand for their goods and services and they need to reduce their output price, they find

A) it's best to renegotiate the rent they pay in order to get enough of a reduction in their per- unit costs.
B) that they can get substantial savings by finding ways to reduce their raw materials costs rather than cutting their labor force.
C) it's necessary to cut production and their labor force to get any significant reduction in per- unit costs.
D) they need to find a way to increase the per-unit selling price of their product.
E) None of these choices are correct.

Correct Answer:

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