Managerial Economics

1. Under what conditions can we be sure that perfect competition leads to a more efficient use of resources than monopoly? How prevalent are these conditions in the real world?
2. As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?

Additional information:

• "Masters, provide your slaves with what is right and fair, because you know that you also have a Master in heaven" (Colossians 4:1, NIV).
• "Look at the birds of the [a]air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they?" (Matthew 6:26, NIV).
• "He who oppresses the poor taunts his Maker, But he who is gracious to the needy honors Him" (Proverbs 14:31, NIV).
• "…Encouraged by Wall Street investors, many companies over the past decade have slashed their full-time workforces, reduced benefits and demanded more output from the remaining workers…Many workers sense that they’re merely expendable components of an impersonal production process involving the manipulation of employees for the sole objectives of the maximization of profit and shareholder value.” — John Stapleford, Bulls, Bears, and Golden Calves. IVP Academic (p. 104)

Please use at least 2 References, 300 words, and no plagiarism. I need it in 2 hours