According tp standard microeconomic theory, if a firm is dealing with an immediate disaster (i.e. flood, earthquake) or facing bankruptcy, then it might layoff workers now to cut costs. This type of executive decision is known as short-run cost management.
Multiple Choice
1-Only the MB=MR concept can give us the best answer.
2-Only game theory software can answer this question for us. This option is the only hope.
3-This is a false statement.
4-This is a true statement.