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Suppose a carpet weaving firm closes down and wats to sell off its machines and other assets. These machines, however, are not utilized in other
Suppose a carpet weaving firm closes down and wats to sell off its machines and other assets. These machines, however, are not utilized in other industries. Unable to sell them to other carpet manufacturers, the firm leaves them idle. Which of the following statements will be true? These machines will never be used again and are therefore immobile The firms workers will all find jobs immediately because labor is always homogenous There will be no unemployment of resources in the short run **Complete mobility of capital in this case would imply depreciation of the unused machines and fresh investment in profitable capital by the economy Seach costs involved for workers who were employed in this firm will be zero
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