If a firm was owned by its employees,

A) wage reductions would be lower than if the firm was run for profit.
B) those in charge would not act any differently than regular owners; there would still be layoffs.
C) those not in charge would remain risk neutral.
D)  there is a higher probability that wage reductions would outweigh layoffs.

ANSWER:

D)  there is a higher probability that wage reductions would outweigh layoffs.