A factory is experiencing a reduction in sales that has lasted an extended period of time due to a recession. With inventory piling up in the warehouse, the factory should send everyone home until the recession is over. lay off the same percent of its labor force as the percent increase in inventory. lay off the same percent of its labor force as the percent decline in sales. cut each worker's pay by the same percent decline in sales

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In this scenario the factory is experiencing a reduction in sales due to a recession resulting in in... View the full answer