Explicit contracts may lead to layoffs in recessions, yet they can still be efficient. Why?

1. A Option A: Guarantee that only the least productive workers will be laid off
2. B Option B: Minimize negotiation costs
3. C Option C: Minimize unemployment effects
4. D Option D: Will equitable spread the layoffs among junior and senior workers

Answer checked 11 October 2026 · How we write and check questions